A Note on Social Security and Public Debt
In a simple stochastic overlapping generation model, individuals work when young and retire when old, generations’ productivity is affected by a serially uncorrelated random shock, and fiat money and nominal public debt are the only storable assets. In this setting, we show that social security programs featured by a constant contribution rate and budget-balance in each period, as common in the literature, are Pareto-dominated by programs allowing for budget unbalance, compensated by variations of the outstanding nominal public debt.
|Date of creation:||Jul 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 +49 8274210
Fax: +39 +49 827.4211
Web page: http://www.decon.unipd.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Piero Gottardi & Felix Kubler, 2009.
"Social Security and Risk Sharing,"
Economics Working Papers
ECO2009/12, European University Institute.
- Felix Kubler & Department of Economics & Department of Economics & Piero Gottardi, 2007. "Social Security and RIsk Sharing," 2007 Meeting Papers 625, Society for Economic Dynamics.
- Piero Gottardi & Felix Kubler, 2006. "Social Security and Risk Sharing," Working Papers 2006_38, Department of Economics, University of Venice "Ca' Foscari".
- Piero Gottardi & Felix Kubler, 2006. "Social Security and Risk Sharing," CESifo Working Paper Series 1705, CESifo Group Munich.
- V. V. Chari & Patrick J. Kehoe, 1998.
"Optimal fiscal and monetary policy,"
251, Federal Reserve Bank of Minneapolis.
- John Y. Campbell & Yves Nosbusch, 2007.
"Intergenerational risksharing and equilibrium asset prices,"
LSE Research Online Documents on Economics
24484, London School of Economics and Political Science, LSE Library.
- Campbell, John Y. & Nosbusch, Yves, 2007. "Intergenerational risksharing and equilibrium asset prices," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2251-2268, November.
- Nosbusch, Yves & Campbell, John, 2007. "Intergenerational Risksharing and Equilibrium Asset Prices," Scholarly Articles 3196340, Harvard University Department of Economics.
- John Y. Campbell & Yves Nosbusch, 2007. "Intergenerational Risksharing and Equilibrium Asset Prices," FMG Discussion Papers dp589, Financial Markets Group.
- John Y. Campbell & Yves Nosbusch, 2006. "Intergenerational Risksharing and Equilibrium Asset Prices," NBER Working Papers 12204, National Bureau of Economic Research, Inc.
- Eric M. Leeper & Tack Yun, 2005.
"Monetary-Fiscal Policy Interactions and the Price Level: Background and Beyond,"
NBER Working Papers
11646, National Bureau of Economic Research, Inc.
- Eric Leeper & Tack Yun, 2006. "Monetary-fiscal policy interactions and the price level:Background and beyond," International Tax and Public Finance, Springer, vol. 13(4), pages 373-409, August.
- Enders, Walter & Lapan, Harvey E., 1982.
"Social Security Taxation and Inter-Generational Risk Sharing,"
Staff General Research Papers
10822, Iowa State University, Department of Economics.
- Enders, Walter & Lapan, Harvey E, 1982. "Social Security Taxation and Intergenerational Risk Sharing," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 647-58, October.
- Henning Bohn, 2004.
"Intergenerational Risk Sharing and Fiscal Policy,"
2004 Meeting Papers
22, Society for Economic Dynamics.
- Dirk Krueger & Felix Kubler, 2002. "Intergenerational Risk-Sharing via Social Security when Financial Markets Are Incomplete," American Economic Review, American Economic Association, vol. 92(2), pages 407-410, May.
When requesting a correction, please mention this item's handle: RePEc:pad:wpaper:0083. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Raffaele Dei Campielisi)
If references are entirely missing, you can add them using this form.