Mitigating Demographic Risk Through Social Insurance

33 Pages Posted: 5 Feb 2001 Last revised: 5 Aug 2010

See all articles by Jerry Green

Jerry Green

Harvard University, HBS Negotiations, Organizations and Markets Unit; Dept. of Economics; National Bureau of Economic Research (NBER)

Date Written: November 1977

Abstract

A two-period lifetime overlapping generations growth model is used to evaluate the possibility that social insurance can effectively offset economic risks associated with uncertainty about the rate of population growth. Crude measures of the seriousness of this type of risk in the current United States situation are presented. Sufficient conditions on the structure of the economy for such intergenerational risk pooling to be mutually beneficial to all members of society are derived. Although it is logically possible to satisfy them1 we argue that they are unlikely to be realized empirically in an economy similar to that of the United States. Because of this failure, some more complex types of policy options are also discussed.

Suggested Citation

Green, Jerry R., Mitigating Demographic Risk Through Social Insurance (November 1977). NBER Working Paper No. w0215. Available at SSRN: https://ssrn.com/abstract=236560

Jerry R. Green (Contact Author)

Harvard University, HBS Negotiations, Organizations and Markets Unit; Dept. of Economics ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-3950 (Phone)
617-495-6859 (Fax)

National Bureau of Economic Research (NBER)

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