Pestieau, Pierre; Possen, Uri M. - In: National Tax Journal 53 (2000) n. 1, pp. 41-58
We show that investing social security in the equity market makes no difference under three assumptions: (1) the transition generation is compensated by public borrowing, (2) the benefit rule is unchanged, and (3) individuals’ portfolio choices are unconstrained. We also show that when these...