In this book Peter Diamond analyzes social security as a particular example of optimal taxation theory. Assuming a world of incomplete markets and asymmetric information, he uses a variety of simple models to illuminate the economic forces that bear on specific social security policy issues. The...

Pension benefit rules depend on individual history far more than taxes do, and age plays a much larger role in pension determination than in tax determination. Apart from some simulation studies, theoretical studies of optimal tax design typically contain neither a mandatory pension system nor...

A brief overview of Social Security -- Goals for Social Security reform -- Social Security's long-term deficit -- A three-part plan to shore up Social Security -- Strengthening Social Security's effectiveness as social insurance -- Implications for benefits and revenue -- Individual accounts --...