Old Age Income Maintenance

The rapid increase -- over the next thirty years -- in the population share of persons above retirement age has led to a steady increase in attention paid by OECD Governments to questions concerning old age income maintenance. The attached paper looks at the proper role the Government can play in the provision of income for the elderly. The analysis starts with a discussion of the outcomes that can be expected under private contracting, in the absence of any specific Government intervention. Equity and efficiency concerns with these outcomes are identified, and the paper then examines how alternative forms of Government intervention, including comprehensive public old age pension schemes, can potentially improve on these outcomes. Explicit consideration is given to limitations on Governments' ability to achieve desired goals, as well as market distortions introduced by Government intervention ...