The Adequacy of Savings

Kotlikoff, Laurence J.; Spivak, Avia; Summers, Lawrence H.

doi:10.3386/w0627

Cited by 49 publications

(50 citation statements)

References 2 publications

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“…For example, Diamond [1977, p. 281] states that a "justi cation for Social Security is that many individuals will not save enough for retirement if left to their own devices." Kotlikoff, Spivak, and Summers [1982] remark on the widely held belief that the "essential premise underlying the Social Security system . .…”

Section: Introductionmentioning

confidence: 99%

Time-Inconsistent Preferences and Social Security

Joines

2003

The Quarterly Journal of Economics

175

113

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In this paper we examine the role of social security in an economy populated by overlapping generations of individuals with time-inconsistent preferences who face mortality risk, individual income risk, and borrowing constraints. We nd that unfunded social security lowers the capital stock, output, and consumption for consumers with time-consistent or time-inconsistent preferences. However, it may raise or lower welfare depending on the strength of time inconsistency.

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Section: Introductionmentioning

confidence: 99%

Time-Inconsistent Preferences and Social Security

Joines

2003

The Quarterly Journal of Economics

175

113

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“…There is a growing literature that tries to measure the extent of myopia based on survey data and experiments. However, it is still an area of research in its infancy, see Summers (1982) andHamermesh (1982) for early contributions and the recent work on "hyperbolic discounting" for an approach which deals with saving decisions which are apparently equivalent to myopic behaviour (Laibson, Repetto and Tobacman, 1998). From a macroeconomic point of view, the "correct" saving rate can be inferred from the theory of optimal growth.…”

Section: Today's Saving Ratementioning

confidence: 99%

Savings: the policy debate in Europe

Börsch‐Supan

Brugiavini

2001

Oxford Review of Economic Policy

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Three issues dominate the public policy debate over savings in Continental Europe. First, can private savings substitute for public pensions in the provision of retirement income, given that the current generosity of pay-as-you-go financed pensions is hardly sustainable in the light of population ageing? And if so, which policy steps have to be taken to alleviate this transition? Second, does the evolution of a "new financial landscape" in Europe necessitate policy response in terms of taxation and regulation, specifically considering the increase in pension funds? And third, closely related to the other two issues, is there too much or too little saving in an ageing Europe? Will pension reform and the new financial landscape increase or decrease overall saving? Do we need to subsidise saving more or less than we currently do? The paper reviews economic theory and empirical evidence on these intertwined issues. Most importantly, it identifies many gaps in our theoretical and empirical knowledge that caution us against overly strong policy recommendations. Addresses:MEA,

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“…The system may also have a goal of redistribution of income within a cohort or across cohorts (Kotlikoff, Spivak, and Summers 1982). With redistribution, the social planner may face a different budget constraint than the individual.…”

Section: Implications For Social Securitymentioning

confidence: 99%