English, Article edition: Social Security Reform with Heterogeneous Agents Juan C. Conesa; Dirk Krueger

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Social Security Reform with Heterogeneous Agents
Author
  • Juan C. Conesa
  • Dirk Krueger
Physical Description
  • article
Notes
  • This paper analyzes the quantitative role of idiosyncratic uncertainty in an economy in which rational agents vote on hypothetical social security reforms. We find that the role of a pay-as-you-go social security system as a partial insurance and redistribution device significantly reduces political support for a transition to an economy with a fully funded system. We conclude that the status quo bias in favor of an unfunded social security system is stronger in economies in which agents of similar age differ significantly with respect to labor earnings and wealth due to idiosyncratic income uncertainty. (Copyright: Elsevier)
  • social security reform, transition, idiosyncratic uncertainty
  • RePEc:red:issued:v:2:y:1999:i:4:p:757-795
Language
  • English
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