Any meaningful reform of the US Social Security system must deal with the system's current outstanding accumulated unfunded liabilities. The authors model these as a once-off financial liability payable 'tomorrow'. They show that if the equity premium puzzle arises from adverse selection...

In a recent report (IC 1995a) the Industry Commission (IC) estimates that the implementation of the Hilmer Report and related reforms will yield a GDP gaim of around 5.4 per cent. In this paper, assumption are subject to a detailed critique. It is argued that most of the estimated productivity...