This paper, originally written at the time of the political transition, provides an overview of social security issues at that time. A sustained improvement in the living standards of the poor requires economic growth and investment in human capital to allow the poor to benefit from that growth,...

In a stochastic economy with overlapping generations, fiscal policy affects the allocation of aggregate risks. The paper shows how to compute the welfare effects of marginal policy changes that shift risk across cohorts, in general and for an application to social security equity investments. I...