Individual savings accounts for social insurance: rationale and alternative designs

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Using Danish data, we find that about three-fourths of the taxes levied to finance public transfers actually finance benefits that redistribute income over the life cycle of individual taxpayers rather than redistribute resources across people. This finding and similar results for other countries provide a rationale for financing part of social insurance via mandatory individual savings accounts. We discuss the advantages and disadvantages of mandatory individual savings accounts for social insurance and survey some recent alternative proposals for such accounts
OriginalsprogEngelsk
TidsskriftInternational Tax and Public Finance
Vol/bind15
Udgave nummer1
Sider (fra-til)67-86
Antal sider20
ISSN0927-5940
DOI
StatusUdgivet - 2008

Bibliografisk note

JEL classification: H53, H55

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