ZEW Economists Receive 2017 Schmölders Prize

ZEW researchers Dr. Mathias Dolls, Dr. Phillipp Dörrenberg and Dr. Holger Stichnoth from the Research Group “International Distribution and Redistribution”, as well as ZEW Research Associate Professor Andreas Peichl, were awarded the 2017 Schmölders Prize of the Verein für Socialpolitik (German Economic Assication, VfS). The researchers received the award at the annual conference of the VfS Public Finance Committee on 9 June 2017.

The prize, which is endowed with 3,000 euros, is awarded annually by the Schmölders Stiftung, a foundation for behavioural research in the field of economics. In their award-winning paper “Do Savings Increase in Response to Salient Information About Retirement and Expected Pensions?” the authors analyse whether the provision of specific information on expected pension payments has any influence on the development of later savings. The study examines the effects of information letters which are sent out annually by the German pension authority (Deutsche Rentenversicherung) and contain detailed information on the individuals’ pension entitlements. The ZEW researchers find that these pension statements considerably encourage pensioners to make additional private retirement provision for old age. While the information letters have had a negative impact on charitable donations, they motivated more individuals aged 27 or older to invest in private pension plans. A further result of the study is that German taxpayers tend to overestimate their expected retirement pension. In order to make the pension system sustainable, future pension reforms will have to be more transparent and prevent recipients from overestimating their future claims.

The Schmölders Prize is awarded by a jury composed of the chair of the advisory board of the Schmölders Stiftung and, on a rotating basis, the VfS’ Committee for Social Policy, Public Finance, or Economic History. The prize honours research papers which have been published within the last three years and distinguish themselves from other publications in terms of originality and scientific excellence. The VfS is the largest professional economic association in the German-speaking countries. Its aim is to promote scientific research on economic and socio-political issues as well as to strengthen international cooperation in the field of economics.