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Elimination of Social Security in a Dynastic Framework

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  • Selahattin Imrohoroglu
  • Aise Imrohoroglu

Abstract

In this paper we study the welfare effects of eliminating social security in a model with two sided altruism where social security provides insurance against lifetime and individual income uncertainty. Our findings indicate that households are able to shift the efficiency gains, generated through privatization of social security, across parents and children quite successfully. Contrary to a pure life-cycle setup, our framework yields significant support for even an uncompensated elimination of unfunded social security.
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Suggested Citation

  • Selahattin Imrohoroglu & Aise Imrohoroglu, 2005. "Elimination of Social Security in a Dynastic Framework," 2005 Meeting Papers 928, Society for Economic Dynamics.
  • Handle: RePEc:red:sed005:928
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