Recent work on the theory of early retirement Pierre Pestieau, Helmuth Cremer, Jean Marie Lozachmeur
By: Pestieau, Pierre
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Contributor(s): Cremer, Helmuth | Lozachmeur, Jean Marie.
Material type: 
ArticlePublisher: 2006Subject(s): SEGURIDAD SOCIAL | PENSIONES | EDAD DE JUBILACION | IMPOSICION OPTIMA | POLITICA FISCAL | MODELOS ECONOMETRICOSOnline resources: Click here to access online
In:
Hacienda Pública Española n. 179 (4/2006), p. 9-24Summary: Pension systems are often blamed for distorting the retirement ageand they are held responsible for the widely observed trend towards early retirement. In a world of laissez - faire or in a first - setting, there would be no such distortions. However, they may be unavoidable when first - best instrumentsare nor available, becouse health and productivity are not observable. We show that while there is no doubt that retirement age is too low in many countries, acomplete elimination of this bias is not the right answer. In other words, reforms that involve a switch to an actuarially fair system would be overshooting. We present normative and positive arguments. First, some distortions are second -best optimal. Second, and on the positive side, the elimination of the bias might be problematic from a political perspective.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | HPE/2006/179-1 (Browse shelf) | Available | HPE/2006/179-1 |
Bibliografía.
Pension systems are often blamed for distorting the retirement ageand they are held responsible for the widely observed trend towards early retirement. In a world of laissez - faire or in a first - setting, there would be no such distortions. However, they may be unavoidable when first - best instrumentsare nor available, becouse health and productivity are not observable. We show that while there is no doubt that retirement age is too low in many countries, acomplete elimination of this bias is not the right answer. In other words, reforms that involve a switch to an actuarially fair system would be overshooting. We present normative and positive arguments. First, some distortions are second -best optimal. Second, and on the positive side, the elimination of the bias might be problematic from a political perspective.
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