There are many elements of the problem facing governments that must decide how to structure public pensions, in particular, and fiscal policy, more generally. In this thought-provoking paper, Henning Bohn focuses on one issue, in particular, how well do alternative policies succeed in spreading different risks across generations. Many of his conclusions are straightforward and unsurprising. Others require more thought to understand, but, in the end, are just as convincing. Still others, though, do depend somewhat on particular modelling assumptions. In my comments, I will review what I see as the paper’s important insights, and comment on where I think results might not be robust.
KeywordsFiscal Policy Government Debt Public Pension Productivity Shock Pension Policy
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