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FINANCIAL CONSISTENCY IN LONGITUDINAL MICROSIMULATION: HOMEMAKER PENSIONS RE‐EXAMINED
Author(s) -
Kennedy Bruce R.
Publication year - 1990
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1990.tb00282.x
Subject(s) - microsimulation , economics , redistribution (election) , pension , consistency (knowledge bases) , public economics , macroeconomics , econometrics , finance , politics , computer science , political science , artificial intelligence , transport engineering , law , engineering
Transfer programs, including public pension plans, do not generate wealth. In this paper methods of distributional analysis that lack budget constraints and are prone to illusions of wealth creation are criticized. A microsimulation analysis reported in “Homemaker Pension and Lifetime Redistribution” (Wolfson, 1988) is repeated using a conceptual framework that imposes a balance between the positive and negative impacts of transfer programs. This alternate analytical perspective reverses the distributional conclusions of the earlier study conducted using the same model.