scholarly journals The effects of financing rules in pay-as-you-go pension systems on the life and the business cycle

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Christian Scharrer
Keyword(s):  
Business Cycle ◽  
Large Scale ◽  
Public Pension ◽  
Capital Income ◽  
Overlapping Generations Model ◽  
Pension Systems ◽  
Lump Sum ◽  
The Social ◽  
The Business Cycle ◽  
Pension Benefits

Abstract Empirically, revenues of public pension systems are more volatile than expenditures. Therefore, the question arises how the social security authority should buffer its revenues and adjust its contributions over the business cycle. This paper studies the corresponding effects on the life cycle of households and the business cycle in a large-scale overlapping generations model. In particular, the labor supply is endogenous and takes the intertemporal links between contributions and pension benefits into account. Sluggish adjustments of contribution rates that are implemented by adjusting a financial buffer stock both stabilize an economy and decrease the volatility of lifetime utilities of most workers and retirees, in contrast to sole adjustments of contribution rates. However, changes of consumption, capital income, or lump sum taxes, which aim to balance public pension budgets, improve the allocation of aggregate risk across cohorts for people up to an age of at least 71 years.

Monopoly Abuse

2015 ◽  
pp. 66-78
Keyword(s):  
Business Cycle ◽  
Economic Efficiency ◽  
Quality Standards ◽  
Business Practice ◽  
Social Approach ◽  
Instrumental Approach ◽  
The Social ◽  
The Business Cycle ◽  
Social Product ◽  
A Company

Monopoly is the case when a firm provides products or services to which there is neither competition nor a near substitute, dictating price and quantity produced. Monopolies raise concerns of unethical business practice because they perform acts of conspiracy and collusion. Consumers will be buying needed products at unfair prices and questionable quality standards. The instrumental approach is when a company performs monopolistic behavior in order to maximize company profits and satisfy corporate shareholders. The social approach is when a company seeks the good of the greater environment, looking beyond the benefit of shareholders. Monopolistic behavior may provide certain positive advantages like helping expand different industries, generating a lot of capital into the business cycle, introducing innovation, and bringing a solution to some major economic problems. Disadvantages of monopolies are mal-distribution of the social product, decreased economic national growth, and increased unemployment levels, blocking competitive markets, and lacking socio-economic efficiency. This chapter explores monopolistic abuses.

scholarly journals THE BURDEN OF UNANTICIPATED INFLATION: ANALYSIS OF AN OVERLAPPING-GENERATIONS MODEL WITH PROGRESSIVE INCOME TAXATION AND STAGGERED PRICES

2011 ◽  
Vol 16 (2) ◽  
pp. 278-308 ◽  
Author(s):  
Burkhard Heer ◽  
Alfred Maußner
Keyword(s):  
Overlapping Generations ◽  
Price Model ◽  
Overlapping Generations Model ◽  
Lump Sum ◽  
Short Run ◽  
The Business Cycle ◽  
Redistributive Effects ◽  
Progressive Income Taxation ◽  
Unanticipated Inflation

Inflation is often associated with a loss for the poor in the medium and long term. We study the short-run redistributive effects of unanticipated inflation in a dynamic optimizing sticky price model of the business cycle. Agents are heterogeneous with regard to their age and their productivity. We emphasize three channels of the effect of inflation on income distribution: (1) factor prices, (2) “bracket creep,” and (3) sticky pensions. Unanticipated inflation that is caused by monetary expansion is found to reduce income inequality. In particular, an increase of the money growth rate by one standard deviation results in a 1% drop of the Gini coefficient of disposable income if extra tax revenues are transferred lump-sum to the households.

scholarly journals THE RETURN ON SOCIAL SECURITY WITH INCREASING LONGEVITY

2016 ◽  
Vol 21 (2) ◽  
pp. 462-487 ◽  
Author(s):  
Markus Knell
Keyword(s):  
Working Life ◽  
Social Optimum ◽  
Retirement Age ◽  
Internal Rate Of Return ◽  
Policy Regimes ◽  
Pension Systems ◽  
The Social ◽  
Retirement Decisions ◽  
Pension Benefits ◽  
The Impact

In this paper I study the impact of increasing longevity on pay-as-you-go pension systems. First, I show that increasing longevity increases the internal rate of return. The size of the effect differs for different policy regimes. It is higher for the case where the retirement age is increased to keep the system in balance than for the case where the necessary adjustment is achieved by reducing pension benefits. Second, I study optimally chosen retirement decisions and I show that the socially optimal policy involves a shorter working life than the private optimum. The social optimum can be implemented by the use of a PAYG system that combines an actuarial and a flat pension.

scholarly journals How Risky Are Recessions for Top Earners?

2014 ◽  
Vol 104 (5) ◽  
pp. 148-153 ◽  
Author(s):  
Fatih Guvenen ◽  
Greg Kaplan ◽  
Jae Song
Keyword(s):  
Real Estate ◽  
Social Security ◽  
Business Cycles ◽  
Business Cycle ◽  
Social Security Administration ◽  
Earnings Distribution ◽  
Population Average ◽  
The Social ◽  
The Business Cycle ◽  
Average Worker

How sensitive to business cycles are the earnings of top earners? And, how does the business cycle sensitivity of top earners vary by industry? We use a confidential dataset on earnings histories of US males from the Social Security Administration. On average, individuals in the top 1 percent of the earnings distribution are slightly more cyclical than the population average. But there are large differences across sectors; top earners in Finance, Insurance, and Real Estate (FIRE) and Construction face substantial business cycle volatility, whereas those in Services (who make up 40 percent of individuals in the top 1 percent) have earnings that are less cyclical than the average worker.

scholarly journals Real Rigidity, Nominal Rigidity, and the Social Value of Information

2016 ◽  
Vol 106 (1) ◽  
pp. 200-227 ◽  
Author(s):  
George-Marios Angeletos ◽  
Luigi Iovino ◽  
Jennifer La'O
Keyword(s):  
Business Cycle ◽  
Value Of Information ◽  
Social Value ◽  
Cycle Model ◽  
Pricing Decisions ◽  
Nominal Rigidity ◽  
The Social ◽  
State Of The Economy ◽  
Business Cycle Model ◽  
The Business Cycle

Does welfare improve when firms are better informed about the state of the economy and can thus better coordinate their production and pricing decisions? We address this question in an elementary business-cycle model that highlights how the dispersion of information can impede both kinds of decisions and, in this sense, be the source of both real and nominal rigidity. Within this context we develop a taxonomy for how the social value of information depends on the two rigidities, on the sources of the business cycle, and on the conduct of monetary policy. (JEL D21, D82, D83, E32, E52)

scholarly journals The asymmetric effect of the business cycle on poverty in Argentina

2019 ◽  
Vol 66 (3) ◽  
pp. 347-364
Author(s):  
Guido Zack ◽  
Daniel Sotelsek
Keyword(s):  
Income Distribution ◽  
Business Cycle ◽  
Social Indicators ◽  
High Growth ◽  
Present Situation ◽  
Asymmetric Effect ◽  
Extreme Poverty ◽  
Poverty Measures ◽  
The Social ◽  
The Business Cycle

After the crisis of 2002, Argentina started a process of strong recovery of the social indicators, which slowed from 2007 and has stagnated since 2012. The present situation is slightly better in relation to the 1990s, but worse if the comparison is made with the 1980s and the 1970s. Despite the high growth rates experienced until 2011, income distribution was the main cause of improvement in poverty and extreme poverty measures. This article examines the risk of reversing in the coming years part of the recovery achieved. This risk is based on the possible asymmetric effect of the business cycle on social indicators, analyzed through the income and income distribution elasticities of poverty and extreme poverty estimated for the 2003-2017 period.

Effects of employee benefits on affective and continuance commitment during times of crisis

2019 ◽  
Vol 41 (2) ◽  
pp. 220-238 ◽  
Author(s):  
Eleanna Galanaki
Keyword(s):  
Organizational Commitment ◽  
Business Cycle ◽  
Large Scale ◽  
Employee Perceptions ◽  
Employee Benefits ◽  
Future Research ◽  
Employee Benefit ◽  
Continuance Commitment ◽  
Content Type ◽  
The Business Cycle

Purpose Employee benefits represent a large proportion of operational costs in most sectors, but discussions of their outcomes have been inconclusive. The purpose of this paper is to decipher the effects of employee benefits on organizational commitment in a changing and largely uncertain environment. Design/methodology/approach Three repeated large-scale surveys in Greece during the recent recession are used (2012, 2013 and 2015, total n=3,498). Findings A new taxonomy of employee benefits based on employees’ subjective utility evaluations is developed and applied. Availability of benefits and changes in the allocation policies of benefits are found to significantly but not powerfully influence organizational commitment. The setting in which this exchange is realized is critical for the relationships developed. Research limitations/implications The study is conducted in a single country during the recession and trough phases of the business cycle and employee benefit allocation is measured with employee perceptions. Future research is called to couple present findings with international research at diverse phases of the business cycle and objective or company-provided measures of employee benefits. Practical implications Employers are advised to draft long-term employee benefit strategies, avoid frequent adjustments and provide multiple types of employee benefits, to increase affective organizational commitment. Originality/value This is the first time employee benefits are treated as a whole, and effects of their allocation and of changes in their allocation are explored at the employee level.

Industrial Life and Labor in France 1815–1848

1943 ◽  
Vol 3 (2) ◽  
pp. 117-151 ◽  
Author(s):  
Arthur L. Dunham
Keyword(s):  
Nineteenth Century ◽  
Business Cycle ◽  
Large Scale ◽  
Point Of View ◽  
Political Factors ◽  
Nineteenth Century France ◽  
French People ◽  
The Business Cycle ◽  
New Evidence

A new study of labor in France in the earlier nineteenth century seems justified for two reasons. First, a change in the point of view is desirable. Labor in that period has been treated as a movement related to political factors and to socialistic and other doctrines. I feel that it should be studied now in the light of the changes wrought in the lives of the French people by the advent of large-scale industry with its factories, machinery, and concentration of capital. It is important to realize that much of the unemployment from which French laborers suffered in this period was due to those recurrent crises in industry and trade which we now study as parts of the business cycle. We have been taught wrongly to believe that while England suffered from these crises early in the nineteenth century France was virtually exempt until 1857. Secondly, the study of French labor needs revision in the light of new evidence and of a reappraisal of some of the familiar evidence.

scholarly journals Business Cycle, SSE Policy, and Cooperatives: The Case of Ecuador

2020 ◽  
Vol 12 (13) ◽  
pp. 5485 ◽  
Author(s):  
Inmaculada Buendía-Martínez ◽  
Agustín Álvarez-Herranz ◽  
Mercedes Moreira Menéndez
Keyword(s):  
Public Policy ◽  
Business Cycle ◽  
Positive Impact ◽  
Global Perspective ◽  
Business Cycle Theory ◽  
Solidarity Economy ◽  
Economic Cycles ◽  
New Public ◽  
The Social ◽  
The Business Cycle

Over the last few decades, the social and solidarity economy (SSE) has undergone complex changes, from being undervalued to being institutionalized as a key sector in the economy. Within this context of change, Ecuador is a remarkable example of a country that has revamped its public policy to situate the SSE in a position of prominence on the national landscape. Using the business cycle theory and based on a model of panel data from 2007–2017, this article attempts to empirically validate that the relationship between the size of Ecuadorian cooperatives, as core businesses of SSE, is coupled with the expansive and destructive economic cycles by adding two more variables: business structure and public policy. From a global perspective, the results confirm a procyclical of the behavior of cooperatives and the positive impact of the new public policy. However, the sectoral and territorial analysis concludes that only production cooperatives in the primary sector have grown in the new institutional framework, and that this growth is concentrated in provinces with a strong cooperative tradition.

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