eprintid: 19737
rev_number: 67
eprint_status: archive
userid: 2744
dir: disk0/00/01/97/37
datestamp: 2015-11-06 09:09:02
lastmod: 2015-12-30 14:53:17
status_changed: 2015-11-06 09:09:02
type: workingPaper
metadata_visibility: show
creators_name: Laps, Jochen
title: Fully Funded Social Security Pensions, Lifetime Risk and Income
subjects: ddc-330
divisions: i-181000
keywords: Uninsured mortality risk, social security pensions, bequest motive, bequest insurance
abstract: The paper analyzes the welfare consequences of insuring mortality risk by means of standard, fully funded Social Security pensions when individuals wish to make transfers to their heirs. In the presence of uninsured mortality risk,
within-family transfers depend on realized lifespan. While crowding out private transfers, Social Security provides transfer insurance and insurance of the ex ante risk of future generations inheriting a particular amount of transfer wealth. We find that, once ex ante insurance is taken into account, Social Security is welfare improving over the long-run as long as capital is not too productive and the transfer motive is not too strong. Altruists gain far less from Social Security than egoists.
date: 2015-11
id_scheme: DOI
id_number: 10.11588/heidok.00019737
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0603
ppn_swb: 83940977X
own_urn: urn:nbn:de:bsz:16-heidok-197378
language: eng
bibsort: LAPSJOCHENFULLYFUNDE201511
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0603
place_of_pub: Heidelberg
pages: 34
citation:   Laps, Jochen  (2015) Fully Funded Social Security Pensions, Lifetime Risk and Income.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/19737/1/Laps_2015_dp603.pdf