Περίληψη σε άλλη γλώσσα
I explore the effects of exogenous parameters of the social security system on the welfare of individuals, in an overlapping generations economy, where labor supply is inelastic. There is skills heterogeneity, so that individuals of this economy can be either low or high-skilled. The low-skilled receive an extra supplement pension. The social security system has three exogenous parameters: the benefits rate, the contributions rate and the financing parameter that represents the weight of the funded part of the system. I examine the equilibrium conditions of total contributions and total benefits, in order to find the equilibrium supplement pension, as a function of the exogenous parameters. The supplement pension can be a proportion of the wage or a flat amount. I examine and compare the effects of the three exogenous social security parameters on the following four cases: the welfare of the low and the high-skilled, for both the cases the supplement is a proportion of the wage and whe ...
I explore the effects of exogenous parameters of the social security system on the welfare of individuals, in an overlapping generations economy, where labor supply is inelastic. There is skills heterogeneity, so that individuals of this economy can be either low or high-skilled. The low-skilled receive an extra supplement pension. The social security system has three exogenous parameters: the benefits rate, the contributions rate and the financing parameter that represents the weight of the funded part of the system. I examine the equilibrium conditions of total contributions and total benefits, in order to find the equilibrium supplement pension, as a function of the exogenous parameters. The supplement pension can be a proportion of the wage or a flat amount. I examine and compare the effects of the three exogenous social security parameters on the following four cases: the welfare of the low and the high-skilled, for both the cases the supplement is a proportion of the wage and when it is a flat amount. I find that when labor supply is inelastic, the way we express the supplement does not affect the welfare of neither the high-skilled, nor the low-skilled. However, the three exogenous social security parameters affect differently the welfare of the high and the low-skilled, since for the latter, we must also take into account the indirect effects on their welfare, through the supplement pension. I then extent the parametric social security model, by introducing leisure and let labor supply be an endogenous variable. It is found that, when labor supply is endogenous, the effects of changes of the social security parameters on the welfare of individuals are the same for the high-skilled, as in the case of inelastic labor supply. However, they are differentiated for the low-skilled in the case the supplement is flat amount, because of the indirect effects it then has on leisure and labor. Next, I develop a model of enrollment for employees in a default retirement plan of a firm. A default portfolio is provided by the firm and employees are automatically enrolled to it. It is assumed there is risk aversion heterogeneity among the employees. A total welfare loss function is constructed, which the firm minimizes, in order to choose the optimal default allocation. I then construct a similar model, depicting the deviation of the loss between an agent and the representative agent of the default allocation. I show that under different expressions of the deviation in absolute and quadratic forms, we come up with different optimal allocations in the default portfolio. Expressed in its quadratic form, the deviation minimization problem implies that the higher the risk heterogeneity, the less risky the optimal default portfolio will be.
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