effects of privatizing social security, and a simple privatization proposal, the Personal Security System, to discuss other … issues associated with privatization. According to the AK Model, privatizing social security can create major long … compensated for losses from privatization. The precise size of the efficiency gain depends on the existing tax structure, linkage …

privatization of the social security system, going from a Pay-As-You-Go to a Fully Funded system, generates large long run welfare … privatization in a Pareto improving way. The government decides endogenously how to finance the implicit social security liabilities …