By Peter A. Diamond
In this booklet, Peter Diamond analyzes social safeguard as a particular
instance of optimum taxation idea. Assuming an international of incomplete markets and
uneven info, he makes use of quite a few uncomplicated versions to light up the
monetary forces that endure on particular social protection coverage concerns. the point of interest is on
the measure of progressivity fascinating in social safeguard and the layout of
incentives to hold up retirement past the earliest age of eligibility for benefits.
ahead of studying those types, Diamond offers introductions to optimum source of revenue tax
idea and the speculation of incomplete markets. He contains fresh theoretical
advancements equivalent to time-inconsistent personal tastes into his analyses and indicates that
distorting taxes and a degree of progressivity in merits are fascinating. Diamond
additionally discusses social protection reform, with a spotlight on Germany.