Social security reform with impure intergenerational altruism

Fang Yang

Journal of Economic Dynamics and Control, 2013, vol. 37, issue 1, 52-67

Abstract: This paper studies the long-run aggregate and welfare effects of eliminating Social Security in a quantitative dynamic general equilibrium life-cycle model where parents and their children are linked by voluntary and accidental bequests. Social Security in this model with impure altruism has a smaller effect on capital accumulation than in a pure life-cycle model, a bigger effect than in a model with two-sided altruism. The welfare gain of eliminating Social Security system under impure altruism is smaller than that in a pure life-cycle model, and bigger than that in a model with two-sided altruism.

Keywords: Social security; Altruism; Heterogeneous agents; Welfare (search for similar items in EconPapers)
JEL-codes: C68 D52 E6 H55 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Working Paper: Social Security Reform with Impure Intergenerational Altruism (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:37:y:2013:i:1:p:52-67

DOI: 10.1016/j.jedc.2012.06.009

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