Individual Savings Accounts and the Life-Cycle Approach to Social Insurance

Publikation: Working paper › Forskning

Standard

Individual Savings Accounts and the Life-Cycle Approach to Social Insurance. / Sørensen, Peter Birch; Hansen, Martin Ino; Bovenberg, A. Lans.

Economic Policy Research Unit. Department of Economics, University of Copenhagen, 2006.

Publikation: Working paper › Forskning

Harvard

Sørensen, PB, Hansen, MI & Bovenberg, AL 2006 'Individual Savings Accounts and the Life-Cycle Approach to Social Insurance' Economic Policy Research Unit. Department of Economics, University of Copenhagen. <https://www.econ.ku.dk/eprn_epru/Workings_Papers/wp-06-03.pdf>

APA

Sørensen, P. B., Hansen, M. I., & Bovenberg, A. L. (2006). Individual Savings Accounts and the Life-Cycle Approach to Social Insurance. Economic Policy Research Unit. Department of Economics, University of Copenhagen. https://www.econ.ku.dk/eprn_epru/Workings_Papers/wp-06-03.pdf

Vancouver

Sørensen PB, Hansen MI, Bovenberg AL. Individual Savings Accounts and the Life-Cycle Approach to Social Insurance. Economic Policy Research Unit. Department of Economics, University of Copenhagen. 2006.

Author

Sørensen, Peter Birch ; Hansen, Martin Ino ; Bovenberg, A. Lans. / Individual Savings Accounts and the Life-Cycle Approach to Social Insurance. Economic Policy Research Unit. Department of Economics, University of Copenhagen, 2006.

Bibtex

@techreport{f8bf02209bf211dbbee902004c4f4f50,
title = "Individual Savings Accounts and the Life-Cycle Approach to Social Insurance",
abstract = "Using Danish data, we find that about three fourths of the taxes levied to finance public transfers actually finance benefits that do not redistribute between people but redistribute income over the life cycle of individual taxpayers. This provides a rationale for financing part of social insurance via mandatory individual savings accounts. An account system that offers liquidity insurance and a lifetime income guarantee helps to alleviate the dilemma between insurance and incentives. To illustrate this, we analyse a specific proposal for reform of the Danish system of social insurance, involving the use of individual accounts. We estimate how the reform would affect the distribution of lifetime incomes, the public budget, and economic efficiency",
keywords = "Faculty of Social Sciences, social insurance, individual accounts, lifetime income distribution",
author = "S{\o}rensen, {Peter Birch} and Hansen, {Martin Ino} and Bovenberg, {A. Lans}",
note = "JEL Classification: H53, H55",
year = "2006",
language = "English",
publisher = "Economic Policy Research Unit. Department of Economics, University of Copenhagen",
type = "WorkingPaper",
institution = "Economic Policy Research Unit. Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - Individual Savings Accounts and the Life-Cycle Approach to Social Insurance

AU - Sørensen, Peter Birch

AU - Hansen, Martin Ino

AU - Bovenberg, A. Lans

N1 - JEL Classification: H53, H55

PY - 2006

Y1 - 2006

N2 - Using Danish data, we find that about three fourths of the taxes levied to finance public transfers actually finance benefits that do not redistribute between people but redistribute income over the life cycle of individual taxpayers. This provides a rationale for financing part of social insurance via mandatory individual savings accounts. An account system that offers liquidity insurance and a lifetime income guarantee helps to alleviate the dilemma between insurance and incentives. To illustrate this, we analyse a specific proposal for reform of the Danish system of social insurance, involving the use of individual accounts. We estimate how the reform would affect the distribution of lifetime incomes, the public budget, and economic efficiency

AB - Using Danish data, we find that about three fourths of the taxes levied to finance public transfers actually finance benefits that do not redistribute between people but redistribute income over the life cycle of individual taxpayers. This provides a rationale for financing part of social insurance via mandatory individual savings accounts. An account system that offers liquidity insurance and a lifetime income guarantee helps to alleviate the dilemma between insurance and incentives. To illustrate this, we analyse a specific proposal for reform of the Danish system of social insurance, involving the use of individual accounts. We estimate how the reform would affect the distribution of lifetime incomes, the public budget, and economic efficiency

KW - Faculty of Social Sciences

KW - social insurance

KW - individual accounts

KW - lifetime income distribution

M3 - Working paper

BT - Individual Savings Accounts and the Life-Cycle Approach to Social Insurance

PB - Economic Policy Research Unit. Department of Economics, University of Copenhagen

ER -

ID: 327342