Individual savings accounts for social insurance

Rationale and alternative designs

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

Research output: Contribution to journalArticleScientificpeer-review

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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

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Finance
Rationale
Social insurance
Savings
Public transfers
Resources
Financing
Tax
Income
Life cycle
Disadvantage

Cite this

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title = "Individual savings accounts for social insurance: Rationale and alternative designs",
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.",
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Individual savings accounts for social insurance : Rationale and alternative designs. / Bovenberg, A.L.; Hansen, M.; Sorensen, P.B.

In: International Tax and Public Finance, Vol. 15, No. 1, 2008, p. 67-86.

Research output: Contribution to journalArticleScientificpeer-review

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