Replication data for: Pareto-Improving Social Security Reform when Financial Markets are Incomplete!?
- Krueger, Dirk
- Kubler, Felix
AbstractThis paper studies an overlapping generations model with stochastic production and incomplete markets to assess whether the introduction of an unfunded social security system leads to a Pareto improvement. When returns to capital and wages are imperfectly correlated, a system that endows retired households with claims to labor income enhances the sharing of aggregate risk between generations. Our quantitative analysis shows that, abstracting from the capital crowding-out effect, the introduction of social security represents a Pareto-improving reform, even when the economy is dynamically efficient. However, the severity of the crowding-out effect in general equilibrium tends to overturn these gains. (JEL D58, D91, E62, H31, H55)
Is supplement to
DOI: 10.1257/aer.96.3.737 (Text)
Krueger, Dirk, and Felix Kubler. “Pareto-Improving Social Security Reform When Financial Markets Are Incomplete!?” American Economic Review 96, no. 3 (May 2006): 737–55. https://doi.org/10.1257/aer.96.3.737.
- ID: 10.1257/aer.96.3.737 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07