Social Security Taxation and Intergenerational Risk Sharing
Walter Enders and
Harvey Lapan
ISU General Staff Papers from Iowa State University, Department of Economics
Abstract:
The life cycle hypothesis has become the dominant mode used to analyze the effects of a social security system on private saving, the labor/leisure choice, and social welfare. As both Barro and Samuelson indicate, a fully funded Social Security program (in a world of certainty) would drive out an equivalent amount of private saving. If the interest rate is r, the effects of a payment of a dollar into the social security pool while young would just offset* the effects of receiving (1+r) dollars as a transfer when retired. Papers by Diamond, Hi», and Samuelson, among others, have examined the effects of non-fully funded Social Security schemes in a growing economy. A non-fully funded program can be used to alter the private sector's saving rate and, hence, the capital/labor ratio. Social Security, then, can be used as a policy tool for achieving the (or some variant of the) golden rule growth path.
Date: 1979-07-01
References: Add references at CitEc
Citations:
Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... 0a6d10e64344/content
Related works:
Journal Article: Social Security Taxation and Intergenerational Risk Sharing (1982) 
Working Paper: Social Security Taxation and Inter-Generational Risk Sharing (1982)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:197907010700001091
Access Statistics for this paper
More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().