IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Effects of Social Security on Private Savings: A Reappraisal of the Time Series Evidence

  • Pfau, Wade Donald

Section I reviews some of the important contributions using time series evidence to estimate Social Security’s impact on private savings. Essential to these studies is the use of a “Social Security Wealth” (SSW) variable, created by Martin Feldstein (1974), which defines the present value of future discounted Social Security benefits for the entire population under the assumption that each working person retires at the normal retirement age. Section II updates this Social Security Wealth series using both an approximation of Martin Feldstein’s original algorithm and two additional methods suggested by Dean Leimer and Selig Lesnoy (1982). The methodology and assumptions are updated to better account for the richer types of data available today. Section III provides details on the regression specifications and data to be used. Section IV follows with the empirical results of these regression specifications and the point estimates of Social Security’s effect on personal savings. Finally, in Section V provides an analysis of the effectiveness of these estimation techniques. This study finds some support that Social Security Wealth creates an adverse effect for private savings, as private savings is reduced by about half when using the most realistic assumptions for estimating Social Security Wealth, but the results are not robust across different types of specifications.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://mpra.ub.uni-muenchen.de/19032/1/MPRA_paper_19032.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19032.

as
in new window

Length:
Date of creation: Mar 2005
Date of revision:
Publication status: Published in Sophia International Review 1.27(2005): pp. 57-70
Handle: RePEc:pra:mprapa:19032
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Leimer, Dean R & Lesnoy, Selig D, 1982. "Social Security and Private Saving: New Time-Series Evidence," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 606-29, June.
  2. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-26, Sept./Oct.
  3. Feldstein, Martin S, 1982. "Social Security and Private Saving: Reply," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 630-42, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:19032. 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: (Ekkehart Schlicht)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.