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From the Brazilian Pay-As-You-Go Pension System to Capitalization: Bailing out the Government
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
From the Brazilian Pay-As-You-Go Pension System to Capitalization: Bailing out the Government
From the Brazilian Pay-As-You-Go Pension System to Capitalization: Bailing out the Government |
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| Creator |
Carvalho, José L.
De Faro, Clovis |
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| Description |
Given that the current official pension plan in Brazil is not feasible, several reform proposals have been recently submited. In a previous work, we have developed a scheme which has its fundamentals based on a market approach. A recurrent criticism to this proposal is centered on the fact that we estimated the present value of the transition costs without considering the flow of funds necessary for the government to implement it. The purpose of this paper is to estimate this flow of funds, taking into account the fact that the government will mantain all the benefit payments associated with the present system. Subsidiarity, we will also suggest a scheme for the government financing of such a flow of funds.
Given that the current official pension plan in Brazil is not feasible, several reform proposals have been recently submited. In a previous work, we have developed a scheme which has its fundamentals based on a market approach. A recurrent criticism to this proposal is centered on the fact that we estimated the present value of the transition costs without considering the flow of funds necessary for the government to implement it. The purpose of this paper is to estimate this flow of funds, taking into account the fact that the government will mantain all the benefit payments associated with the present system. Subsidiarity, we will also suggest a scheme for the government financing of such a flow of funds. |
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| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
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| Contributor |
—
— |
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| Date |
2010-03-08
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://www.rae-ear.org/index.php/rae/article/view/193
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| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 9, No 1 (1994); 237-249
Revista de Análisis Económico – Economic Analysis Review; Vol 9, No 1 (1994); 237-249 0718-8870 0716-5927 |
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| Language |
eng
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| Relation |
http://www.rae-ear.org/index.php/rae/article/view/193/351
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