Speaker:
Hans Fehr
- Universität Würzburg
Thursday, June 20, 2013
at
12:30 PM
Aula H, Palazzo di Economia
The present paper quantifies the importance of family structures for the analysis of social security. For this reason we introduce home production as well as stable and unstable families into the standard stochastic overlapping generation model and simulate with each model version a move from a unfunded towards a funded pension system in Germany.
The simulation exercise computes intergenerational welfare changes and isolates aggregate efficiency effects by means of compensating transfers. Comparing the macroeconomic and welfare consequences resulting from the elimination of social security in the standard and in two-earner family models indicates two major conclusions. First, the consideration of home production has significant effects on labor supply and economic efficiency. Second, the impact of family insurance is fairly weak and can hardly substitute for social security.
pdf (it, 800 KB, 14/03/13)
