Elimination of Social Security in a Dynastic Framework
AbstractIn this paper we study the welfare effects of eliminating social security in a model with two sided altruism where social security provides insurance against lifetime and individual income uncertainty. Our findings indicate that households are able to shift the efficiency gains, generated through privatization of social security, across parents and children quite successfully. Contrary to a pure life-cycle setup, our framework yields significant support for even an uncompensated elimination of unfunded social security.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0402008.
Length: 30 pages
Date of creation: 04 Feb 2004
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Other versions of this item:
- Luisa Fuster & Ayşe İmrohoroğlu & Selahattin İmrohoroğlu, 2007. "Elimination of Social Security in a Dynastic Framework," Review of Economic Studies, Oxford University Press, vol. 74(1), pages 113-145.
- Selahattin Imrohoroglu & Aise Imrohoroglu, 2005. "Elimination of Social Security in a Dynastic Framework," 2005 Meeting Papers 928, Society for Economic Dynamics.
- E - Macroeconomics and Monetary Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-08 (All new papers)
- NEP-DGE-2004-02-08 (Dynamic General Equilibrium)
- NEP-PUB-2004-02-15 (Public Finance)
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