- 著者
- TADASHI YAGI
- 出版者
- JAPANESE ECONOMIC ASSOCIATION
- 雑誌
- The Economic Studies Quarterly (ISSN:0557109X)
- 巻号頁・発行日
- vol.41, no.2, pp.134-154, 1990-06-20 (Released:2007-10-19)
- 参考文献数
- 16
Many people believe that it is undesirable to redistribute income through an annuity system. From an efficiency point of view, it seems to be better to use a tax system to redistribute income. This paper examines the reasons why an annuity system is used to redistribute income, even when the tax system has a redistributive role. Without myopia and capital market imperfections, redistribution through an annuity system has no advantage compared with a tax system. If individuals are myopic and the capital market is imperfect, however, redistribution through an annuity system increases national saving and has a positive effect on capital formation. The paper shows, in addition, that differences in behavior among income classes are important for public policy-making.