Kumru, Cagri S.; Tran, Chung - In: European Economic Review 56 (2012) 7, pp. 1422-1445
We investigate welfare and aggregate implications of a pay-as-you-go (PAYG) social security system in a dynastic framework in which individuals have self-control problems. The presence of self-control problems induces individuals to save less because of their urge for temptation towards current...