Social Security and self control preferences
We analyze the welfare effects of an unfunded social security system. We do so using an overlapping generations economy wherein agents have self-control preferences, face mortality risk, individual income risk, and borrowing constraints. Given our specification of preferences, unfunded social security helps reduce the agents' temptation to consume in every period; consequently, the welfare costs it otherwise entails are substantially mitigated. While both social security and self-control when...[Show more]
|Collections||ANU Research Publications|
|Source:||Journal of Economic Dynamics and Control|
|01_Kumru_Social_Security_and_self_2008.pdf||203.49 kB||Adobe PDF||Request a copy|
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