Individual savings accounts for social insurance: Rationale and alternative designs

A.L. Bovenberg, M. Hansen, P.B. Sorensen

Research output: Contribution to journalArticleScientificpeer-review

10 Citations (Scopus)
263 Downloads (Pure)

Abstract

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.
Original languageEnglish
Pages (from-to)67-86
JournalInternational Tax and Public Finance
Volume15
Issue number1
Publication statusPublished - 2008

Fingerprint Dive into the research topics of 'Individual savings accounts for social insurance: Rationale and alternative designs'. Together they form a unique fingerprint.

  • Cite this