This book shows how today's pension systems are not consistent with trends in ageing populations, and argues for their reform
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Nicholas Barr is Professor of Public Economics at the London School of Economics, the author of numerous books and articles, and a Trustee of HelpAge International. He spent two periods at the World Bank working on income transfers in Central and Eastern Europe and has been a Visiting Scholar at the Fiscal Affairs Department at the IMF. He has been active in debates about pension reform and higher education finance, advising governments in the post-communist countries, and in the UK, Australia, Chile, China, Hungary, New Zealand and South Africa.
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Paperback. Condition: new. Paperback. Mandatory pensions are a worldwide phenomenon. However, with fixed contribution rates, monthly benefits, and retirement ages, pension systems are not consistent with three long-run trends: declining mortality, declining fertility, and earlier retirement. Many systems need reform. This book gives an extensive nontechnical explanation of the economics of pension design. The theoretical arguments have three elements:* Pension systems have multipleobjectives--consumption smoothing, insurance, poverty relief, and redistribution. Good policy needs to bear them all in mind.* Good analysis should be framed in a second-bestcontext-- simple economic models are a bad guide to policy design in a world with imperfect information and decision-making, incomplete markets and taxation.* Any choice of pension system has risk-sharing and distributional consequences, which the book recognizes explicitly.Barr and Diamond's analysis includes labor markets, capital markets, risk sharing, and gender and family, with comparison of PAYG and funded systems, recognizing that the suitablelevel of funding differs by country.Alongside the economic principles of good design, policy must also take account of a country's capacity to implement the system. Thus thetheoretical analysis is complemented by discussion of implementation, and of experiences, both good and bad, in many countries, with particular attention to Chile and China. This is an abridgement of Barr and Diamond's 'Reforming Pensions: Principles and Policy Choices' (OUP, 2008), a larger book that is intended for policy makers and as a supplement in college courses. Shipping may be from our UK warehouse or from our Australian or US warehouses, depending on stock availability. Seller Inventory # 9780195387728
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