期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2008
卷号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：This paper shows that the combination of habit formation ¨C present consumption creating
additional consumption needs in the future ¨C and myopia may explain why some retirees
are forced to "unretire", i.e., unexpectedly return to work. It also shows that when myopia
about habit formation leads to unretirement there is a case for government's intervention.
In a first-best setting the optimal solution can be decentralized by a simple "Pigouvian"
(paternalistic) consumption tax (along with suitable lump-sum taxes). In a second-best
setting, when personalized lump-sum transfers are not available, consumption taxes may
have conflicting paternalistic and redistributive effects. We study the design of
consumption taxes in such a setting when myopic individuals differ in productivity.
