Storesletten, Kjetil; Telmer, Chris; Yaron, Amir - Carnegie Mellon University, Tepper School of Business - 1998
An important aspect of the current U.S. social security system is the tradeoff between the risk sharing it provides and the distortions it imparts on private decisions. We focus on this tradeoff as it applies to labor market risk and capital accumulation. Specifically, we compare the current...