A Note on Resource Testing and Temptation

19 Pages Posted: 3 Jul 2016

See all articles by Cagri S. Kumru

Cagri S. Kumru

Australian National University (ANU)

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics

Athanasios C. Thanopoulos

University of Pittsburgh - Department of Economics

Date Written: November 1, 2015

Abstract

This study analyzes the relative performance in terms of welfare of the current U.S. PAYG system compared to an array of cost equivalent alternative specifications of means-tested pension programs. We conduct our analysis under two different settings. While in the first setting, individuals have standard preferences, in the second setting individuals have self-control preferences. We show that the implications of the reform substantially differs across the two settings.

Keywords: Dynamic general equilibrium, social security, means testing, welfare

JEL Classification: E21, E62, H55

Suggested Citation

Kumru, Cagri S. and Piggott, John and Thanopoulos, Athanasios C., A Note on Resource Testing and Temptation (November 1, 2015). Michigan Retirement Research Center Research Paper No. 2016-340. Available at SSRN: https://ssrn.com/abstract=2802766 or http://dx.doi.org/10.2139/ssrn.2802766

Cagri S. Kumru (Contact Author)

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

Athanasios C. Thanopoulos

University of Pittsburgh - Department of Economics ( email )

4901 Wesley Posvar Hall
230 South Bouquet Street
Pittsburgh, PA 15260
United States

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