The Hayek Pension an Efficient Minimum Pension to Complement the Welfare State

摘要: A means-tested minimum income for old age creates an incentive some not to save and instead free ride. Recent literature is undecided what extent this inefficient savings distortion should be addressed by a compulsory pension system because resulting labour-leisure distortions could even worse. In simple optimal taxation framework we show that it Pareto improving fully eliminate the means of termed "Hayek pension" decreases with after-tax lifetime earnings, zero benefits middle high incomes. combination Hayek contribution dependent Bismarck found superior tax financed flat benefit Beverage pension.