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Social Security Investment in Equities I : Linear Case

Diamond, Peter A. - 2008

Social Security trust fund portfolio diversification to include some equities reduces the equity premium by raising the safe real interest rate. This requires changes in taxes. Under the hypothesis of constant marginal returns to risky investments, trust fund diversification lowers the price of...

Persistent link: https://www.econbiz.de/10012774822

Insulation of Pensions from Political Risk

Diamond, Peter A. - 2006

There are many sources of political risk to public provision of pensions. This paper analyzes legislation to alter the …

Persistent link: https://www.econbiz.de/10012783964

Quantitative Implications of the Home Bias : Foreign Underinvestment, Domestic Oversaving, and Corrective Taxation

Razin, Assaf - 2008

There is strong evidence about a home-court advantage in international portfolioquot; investment. One explanation for the bias is an information asymmetry between domestic andquot; foreign investors about the economic performance of domestic firms. This asymmetry causesquot; two types of...

Persistent link: https://www.econbiz.de/10012774918

Delays in Claiming Social Security Benefits

Coile, Courtney; Diamond, Peter A.; Gruber, Jonathan; … - 2021

This paper focuses on Social Security benefit claiming behavior, a take-up decision that has been ignored in the previous literature. Using financial calculations and simulations based on an expected utility maximization model, we show that delaying benefit claim for a period of time after...

Persistent link: https://www.econbiz.de/10013221087

Unskilled Migration : A Burden or a Boon for the Welfare State

Razin, Assaf; Sadka, Efraim - 2021

In a static setup, migration of unskilled labor may be resisted by the entire native-born population because, being relatively low earners, migrants are net beneficiaries of the fiscal system. However, the paper shows that with a pay-as-you-go pension, an important pillar of the welfare state,...

Persistent link: https://www.econbiz.de/10013244737

Social Security and Democracy

Mulligan, Casey B.; Gil, Ricard; Sala-i-Martin, Xavier - 2021

Many political economic theories use and emphasize the process of voting in their explanation of the growth of Social Security, government spending, and other public policies. But is there an empirical connection between democracy and Social Security program size or design? Using some new...

Persistent link: https://www.econbiz.de/10013310228

Social Security, Retirement, and the Single-Mindedness of the Electorate

Mulligan, Casey B.; Sala-i-Martin, Xavier - 2021

We propose a positive theory that is consistent with two important features of social security programs around the world: (1) they redistribute income from young to old and (2) they induce retirement. We construct a voting model that includes a political campaign' or debate' prior to the...

Persistent link: https://www.econbiz.de/10013222047

Social Security and Retirement in the U.S

Diamond, Peter A.; Gruber, Jonathan - 2021

The largest entitlement program in the United States today is the Social Security program (SS). We provide an overview of the interaction between the SS system and retirement behavior. We begin by documenting historical trends in labor force participation and program receipt, and contemporaneous...

Persistent link: https://www.econbiz.de/10013214595

The Stability and Growth Pact as an Impediment to Privatizing Social Security

Razin, Assaf; Sadka, Efraim - 2022

The aging of the population shakes the confidence in the economic viability of pay-as-you-go social security systems. We demonstrate how in a political-economy framework the shaken cofidence leads to the downsizing of the social security-system, and to the emergence of supplemental individual...

Persistent link: https://www.econbiz.de/10013322100

Privatization of Social Security : Lessons from Chile

Diamond, Peter A. - 2021

In Chile, all covered workers must place 10% of monthly earnings in a savings account with a highly regulated … year (for 1991) which is 2.94% of average taxable earnings. This is close to 30% of the 10% mandatory savings rate. The … pensions in the U.S. However, it compares unfavorably with administrative costs in well-run unified government managed systems …

Persistent link: https://www.econbiz.de/10013230785