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Social security and the consumer price index for the elderly

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Author Info

  • Bart Hobijn
  • David Lagakos

Abstract

Some argue that social security benefits should be adjusted using a price index that reflects the spending habits of the elderly rather than those of workers. This study suggests that if such an index were adopted today, over the next forty years benefit levels would increase and the social security trust fund could become insolvent up to five years sooner than projected.

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Bibliographic Info

Article provided by Federal Reserve Bank of New York in its journal Current Issues in Economics and Finance.

Volume (Year): 9 (2003)
Issue (Month): May ()
Pages:

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Handle: RePEc:fip:fednci:y:2003:i:may:n:v.9no.6

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Related research

Keywords: Social security ; Old age ; Consumer price indexes;

References

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  1. David E. Lebow & Jeremy B. Rudd, 2003. "Measurement Error in the Consumer Price Index: Where Do We Stand?," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 159-201, March.
  2. Erica L. Groshen & Thomas Klitgaard, 2002. "Live long and prosper: challenges ahead for an aging population," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 8(Feb).
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Citations

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Cited by:
  1. Bart Hobijn & David Lagakos, 2005. "Inflation Inequality In The United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 581-606, December.
  2. Gopi Shah Goda & John B. Shoven & Sita Nataraj Slavov, 2011. "How Well Are Social Security Recipients Protected from Inflation?," NBER Chapters, in: Investigations in the Economics of Aging, pages 119-139 National Bureau of Economic Research, Inc.
  3. Leon Bettendorf & Hans Dewachter, 2007. "Ageing and the Relative Price of Nontradeables," Tinbergen Institute Discussion Papers 07-064/2, Tinbergen Institute.
  4. Casper van Ewijk & Maikel Volkerink, 2011. "Will ageing lead to a higher real exchange rate for the Netherlands?," CPB Discussion Paper 197, CPB Netherlands Bureau for Economic Policy Analysis.

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