RIEB Seminar
RIEB Seminar
RIEB Seminar
Jointly supported by Monetary Economics Seminar of Kobe University / Kobe University RIEB Workshop on Economic and Political Research on Latin America
| Date & Time | Tuesday, March 29 2022, 10:00am - 11:30am |
|---|---|
| Place | Online Seminar by Zoom |
| Intended Audience | Faculty, Graduate Students, and People with Equivalent Knowledge |
| Langage | English |
| Remarks | Please complete the registration before March 24, 2022. Meeting URL will be informed later. Registration Form for March 29 (Due: March 24) |
10:00am～11:30am
- Topic
- The Impact of the Chilean Pension Withdrawals during the Covid Pandemic on the Future Savings Rate
- Speaker
- Carlos MADEIRA（Senior Economist, Financial Research Area, Financial Policy Division, Central Bank of Chile）
- Abstract
- Chile implemented pension withdrawals during the Covid pandemic at a much larger scale than other OECD countries. Estimating a life cycle model with I find that households consume a significant fraction of their noncontributory pension wealth, implying a tradeoff between improving public pensions and increasing savings. Counterfactual simulations show that the pandemic pension withdrawals may decrease the future savings rate by 1.7%. Furthermore, policy reforms may decrease the aggregate savings rate by 0.2% for each percentage point of solidarity rate tax from current workers. The solidarity taxes increase substantially the pension income of poor retirees, but their effects decline over time.