A life-cycle growth model is used to investigate the quantitative impact of gradually converting the financing of social security from pay-as-you-go (PAYGO) to full funding. The magnitudes of the losses and gains that particular age cohorts will experience under alternative speeds of conversion...

The picture of economic well-being depends crucially on how it is measured. We introduce a new measure of economic well-being that includes public consumption, income from wealth, and household production. The differences in scope and method between our measure and standard income lead to...