Trade-offs in Means Tested Pension Design
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The means-testing of age pension programs allows governments to control the receipt of pension benefits (extensive margin) and the benefit level (intensive margin). We investigate how the presence of the extensive margin influences the trade-off between protecting the poorer elderly and the economic costs of distorting incentives to work and save of young individuals. The means-test effect via the extensive margin improves the insurance aspect but introduces opposing impacts on incentives that...[Show more]
dc.contributor.author | Tran, Chung | |
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dc.contributor.author | Woodland, Alan | |
dc.date.accessioned | 2015-12-08T22:42:03Z | |
dc.identifier.issn | 0165-1889 | |
dc.identifier.uri | http://hdl.handle.net/1885/36919 | |
dc.description.abstract | The means-testing of age pension programs allows governments to control the receipt of pension benefits (extensive margin) and the benefit level (intensive margin). We investigate how the presence of the extensive margin influences the trade-off between protecting the poorer elderly and the economic costs of distorting incentives to work and save of young individuals. The means-test effect via the extensive margin improves the insurance aspect but introduces opposing impacts on incentives that potentially have ambiguous welfare outcomes. We characterize combinations of the maximum pension benefit and taper rate that balance the negative incentive effects and positive insurance effects. | |
dc.publisher | Elsevier | |
dc.source | Journal of Economic Dynamics and Control | |
dc.title | Trade-offs in Means Tested Pension Design | |
dc.type | Journal article | |
local.description.notes | Imported from ARIES | |
local.identifier.citationvolume | 47 | |
dc.date.issued | 2014 | |
local.identifier.absfor | 140219 - Welfare Economics | |
local.identifier.ariespublication | u4628727xPUB142 | |
local.type.status | Published Version | |
local.contributor.affiliation | Tran, Chung, College of Business and Economics, ANU | |
local.contributor.affiliation | Woodland, Alan, The University of New South Wales | |
local.description.embargo | 2037-12-31 | |
local.bibliographicCitation.startpage | 72 | |
local.bibliographicCitation.lastpage | 93 | |
local.identifier.doi | 10.1016/j.jedc.2014.07.005 | |
local.identifier.absseo | 970114 - Expanding Knowledge in Economics | |
dc.date.updated | 2015-12-08T10:32:29Z | |
local.identifier.scopusID | 2-s2.0-84907663675 | |
local.identifier.thomsonID | 000343353200005 | |
Collections | ANU Research Publications |
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