A Positive Theory of Social Security Based on Reputation
Posted: 5 May 1998
Date Written: Undated
We construct a general equilibrium model in which a pay-as- you-go social security system can be adopted and sustained as a political and economic equilibrium. We analyze the welfare implications of this system and compare general equilibrium welfare measures to the commonly used notion of actuarial fairness.
JEL Classification: H55
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