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Designing social security - a portfolio choice approach

  • Matsen, Egil
  • Thogersen, Oystein

Public social security systems may provide diversification of risks to individuals' life-time income. Capturing that a pay-as-you-go program (paygo) may be considered as a "quasi-asset", we study the optimal size of the social security program as well as the optimal split between a funded part and a paygo part by means of a theoretical portfolio choice approach.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 48 (2004)
Issue (Month): 4 (August)
Pages: 883-904

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Handle: RePEc:eee:eecrev:v:48:y:2004:i:4:p:883-904
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