| Abstract
Many Economists have pointed out that capital-funded pension systems
are superior to pay-as-you-go-financed systems of old-age insurance;
different proposals for reforming the German pay-as-you-go pension system
have been presented. Although the necessity of a fundamental reform
is almost common sense, consequent changes are regularly rejected by
referring to lacks of economic justice. This paper analyses, what kind
of reform serves justice from a constitutional economics point of view.
Criteria are developed, which individuals behind a veil of ignorance
would agree on and which therefore should be met by any reform proposal.
Using these criteria, three prominent proposals for reforming the German
public pension system are analysed.
JEL-Classification: H 55, J 14, J 26.
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