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A Comparative Welfare Analysis of Social Security System Selection

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  • Zheng Wei

    (Peking University, China)

Abstract

The design of a comprehensive social security system is a critical issue to many countries and regions. This paper presents a comparative economic welfare analysis on typical social security systems from the viewpoints of all-generation welfare and each-generation welfare, respectively. The analysis shows that the fact that one social security system is better or worse than another is not absolute and that it depends on some specific parameter conditions. In the paper, we provide these parameter conditions and also show a paradox of social security system design based on the analysis. At the end of the paper, two further research-worthy questions are raised.

Suggested Citation

  • Zheng Wei, 2005. "A Comparative Welfare Analysis of Social Security System Selection," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 1(1), pages 1-12, June.
  • Handle: RePEc:bpj:apjrin:v:1:y:2005:i:1:n:1
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    References listed on IDEAS

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    1. Martin Feldstein, 1995. "Behavioral Responses to Tax Rates: Evidence from TRA86," NBER Working Papers 5000, National Bureau of Economic Research, Inc.
    2. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467-467.
    3. Feldstein, Martin, 1995. "Behavioral Responses to Tax Rates: Evidence from the Tax Reform Act of 1986," American Economic Review, American Economic Association, vol. 85(2), pages 170-174, May.
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