The Insurance Role of Social Security : Theory and Lessons for Policy Reform /

This paper examines the impact of social security on welfare. The provision of social security reduces precautionary savings and encourages early retirement. Consequently, it lowers aggregate capital, employment, output, and consumption. On the other hand, it also provides old age insurance. This tr...

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Библиографические подробности
Главный автор: Valdivia, Victor
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 1997.
Серии:IMF Working Papers; Working Paper ; No. 1997/113
Online-ссылка:Full text available on IMF
Описание
Итог:This paper examines the impact of social security on welfare. The provision of social security reduces precautionary savings and encourages early retirement. Consequently, it lowers aggregate capital, employment, output, and consumption. On the other hand, it also provides old age insurance. This trade-off is examined using a life-cycle general equilibrium model. The paper finds that the current U.S. Social Security system can improve welfare even though the levels of aggregate output, employment, capital, and consumption fall relative to their levels without such a system. The welfare gains arise from insurance against living much longer than expected.
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Объем:1 online resource (49 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
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