Evaluating pay-as-you-go social security systems
- Publisher: Bern: University of Bern, Department of Economics
E62 | sufficient statistic | H55 | optimal payroll taxes | welfare analysis | unfunded social security system | unfunded social security system; sufficient statistic; overlapping generations; reduced form VAR | reduced form VAR | overlapping generations | social security system; overlapping generations; optimal payroll taxes; welfare analysis; reduced form VAR | social security system
jel: jel:E62 | jel:H55
This paper proposes a new method for welfare analysis of unfunded social security systems. Based on an overlapping generations model with endogenous labor supply, we derive a formula for the evaluation of existing pay-as-you-go social security systems that depends on im...