TY  - JOUR
AU  - Sinn,Hans-Werner
TI  - The Crisis of Germany's Pension Insurance System and How It Can Be Resolved
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7304
PY  - 1999
Y2  - August 1999
UR  - http://www.nber.org/papers/w7304
L1  - http://www.nber.org/papers/w7304.pdf
N1  - Author contact info:
Hans-Werner Sinn
Ifo Institute -
Leibniz Institute for Economic Research
at University of Munich
Poschingerstr. 5
81679 Munich
GERMANY
Tel: 49-89-21802748
Fax: 49-89-397303;49-89-8506434 (home)
E-Mail: sinn@ifo.de
AB  - The paper discusses the options for a reform of the German pension system using a model developed at CES for the German Council of economic advisors to the Federal Ministry of Economics and Research. It is argued that the German pay-as-you-go-system is efficient in a present value sense but will nevertheless need the support of a funded system to avoid a financial crisis. The paper investigates the possibility of introducing obligatory private savings at a variable rate where the time path of the savings rate is chosen so as to stabilize the sum of this rate and the pay-as-you-go contribution rate, given the time path of pensions as defined in the present system.
ER  -