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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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previously been discussed in the literature, stems from a public expectation that citizens will enjoy risk premiums and adequate … old-age benefits, an expectation that evolves into political pressure. The outcomes of this risk path are realized in … converge naturally into a new landscape paradigm of risk-sharing, with intergenerational and intragenerational components …
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