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Does Social Security Crowd out Private Wealth? A Survey of the Literature

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  • Marcin Wron ski

    (Collegium of World Economy, SGH Warsaw School of Economics, Warszawa, Poland)

Abstract

In this paper, we review the research on the substitution between social security wealth and private wealth. Our review includes over 100 theoretical and empirical contributions. Nearly 70% of the literature identifies the statistically significant impact of social security wealth on different forms of private savings. A strong majority of authors, who obtain statistically significant results find the negative impact of social security on private savings. We discuss the main limitations of the literature.

Suggested Citation

  • Marcin Wron ski, 2023. "Does Social Security Crowd out Private Wealth? A Survey of the Literature," Journal of Economic Analysis, Anser Press, vol. 2(4), pages 98-122, July.
    • Handle: RePEc:bba:j00001:v:2:y:2023:i:4:p:98-122:d:106
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    References listed on IDEAS

    as
    1. Feldstein, Martin, 1996. "Social Security and Saving: New Time Series Evidence," National Tax Journal, National Tax Association, vol. 49(2), pages 151-64, June.
    2. Feldstein, Martin, 1996. "Social Security and Saving: New Time Series Evidence," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(2), pages 151-164, June.
    3. Yue Li, 2018. "Economic Analysis Of Social Security Survivors Insurance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(4), pages 2043-2073, November.
    4. Sibylle Lehmann-Hasemeyer & Jochen Streb, 2018. "Does Social Security Crowd Out Private Savings? The Case of Bismarck’s System of Social Insurance [Pension Wealth and Household Savings in Europe: Evidence from SHARELIFE]," European Review of Economic History, European Historical Economics Society, vol. 22(3), pages 298-321.
    5. Ragnar Bentzel & Lennart Berg, 1983. "The Role of Demographic Factors as a Determinant of Savings in Sweden," International Economic Association Series, in: Franco Modigliani & Richard Hemming (ed.), The Determinants of National Saving and Wealth, chapter 7, pages 152-179, Palgrave Macmillan.
    6. Koskela, Erkki & Viren, Matti, 1983. "Social Security and Household Saving in an International Cross Section," American Economic Review, American Economic Association, vol. 73(1), pages 212-217, March.
    7. Orazio P. Attanasio & Agar Brugiavini, 2003. "Social Security and Households' Saving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1075-1119.
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