Privatizing Social Security: A Political-Economy Approach

Assaf Razin and Efraim Sadka
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Efraim Sadka: Tel-Aviv U

Monetary and Economic Studies, 2004, vol. 22, issue S1, 127-136

Abstract: The aging of the population shakes the public finance of pay- as-you-go social security systems. We develop a political-economy framework in which this demographic change leads to the downsizing of the social security system, and, as a consequence, to the emergence of supplemental individual retirement programs. Allowing for a one-shot budget deficit, earmarked to accommodate the cost of the social security reforms, is shown to facilitate the political-economy transition from a national to a private pension system.

JEL-codes: D91 E62 H55 J11 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ime:imemes:v:22:y:2004:i:s1:p:127-136

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