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that risk-averse individuals discount positive economic expectations when forming their opinion regarding privatization …, and that risk acceptant individuals weigh positive expectations more heavily. Thus, the endearing effect of economic … confidence on privatization is greater as risk tolerance increases. We use national survey data from the 2008 Cooperative …
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This paper presents four policy options to make Social Security sustainable under the coming demographic shift: 1) increase payroll taxes by 6 percentage points, 2) reduce the replacement rates of the benefit formula by one-third, 3) raise the normal retirement age from sixty-six to...
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We use the IMF''s Global Fiscal Model to evaluate recent proposals to reform social security and the tax system in the United States. Introducing personal retirement accounts is unlikely to yield significant macroeconomic benefits unless it spurs additional fiscal consolidation to prevent a...
Persistent link: https://www.econbiz.de/10014404196
This paper uses a heterogeneous-agent overlapping-generations model to examine the fiscal and distributional consequences of introducing a means test in US Social Security. I find that a means test, that is, conditioning benefit payments on a household's earnings or assets, leads to a higher...
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