; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Optimal Paternalistic Savings Policies"; ; "jannelle.ruswick@mpls.frb.org"; "Moser, Christian A.", "Olea de Souza e Silva, Pedro"; "Federal Reserve Bank of Minneapolis"; "Active-set algorithm", "Social Security", "Present bias", "Retirement", "Preference heterogeneity", "Savings", "Optimal taxation", "Paternalism", "Multidimensional screening"; "E62 - Fiscal Policy", "H55 - Social Security and Public Pensions", "H21 - Taxation and Subsidies: Efficiency; Optimal Taxation"; "We study optimal savings policies when there is a dual concern about undersaving for retirement and income inequality. Agents differ in present bias and earnings ability, both unobservable to a planner with paternalistic and redistributive motives. We characterize the solution to this two-dimensional screening problem and provide a decentralization using realistic policy instruments: mandatory savings at low incomes but a choice between subsidized savings vehicles at high incomes—resembling Social Security, 401(k), and IRA accounts in the US. Offering more savings choice at higher incomes facilitates redistribution. To solve large-scale versions of this problem numerically, we propose a general, computationally stable, and efficient active-set algorithm. Relative to the current US retirement system, we find significant welfare gains from increasing mandatory savings and limiting savings choice at low incomes."^^; "2019-01-10"; "2020-03-16T19:14:51.930439706+00:00"^^; "https://doi.org/10.21034/iwp.17"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2020-03-16T19:14:52.186086825+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "541", "573"; "Institute working paper (Federal Reserve Bank of Minneapolis. Opportunity and Inclusive Growth Institute)"; "017"; "Preference heterogeneity", "Active-set algorithm", "Present bias", "Retirement", "Multidimensional screening", "Optimal taxation", "Savings", "Social Security", "Paternalism"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Opportunity and Inclusive Growth Institute"; ; "Publication" . ; .