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dc.contributor.authorGOTTARDI, Piero
dc.contributor.authorKUBLER, Felix
dc.date.accessioned2009-02-19T17:21:13Z
dc.date.available2009-02-19T17:21:13Z
dc.date.issued2009
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/10680
dc.description.abstractSocial Security and Risk Sharing Piero Gottardi Felix Kubler Abstract In this paper we identify conditions under which the introduction of a pay-as-you-go social security system is ex-ante Pareto-improving in a stochastic overlapping generations economy with capital accumulation and land. We argue that these conditions are consistent with many calibrations of the model used in the literature. In our model financial markets are complete and competitive equilibria are interim Pareto efficient. Therefore, a welfare improvement can only be obtained if agents.welfare is evaluated ex ante, and arises from the possibility of inducing, through social security, an improved level of intergenerational risk sharing. We will also examine the optimal size of a given social security system as well as its optimal reform. The analysis will be carried out in a relatively simple set-up, where the various effects of social security, on the prices of long-lived assets and the stock of capital, and hence on output, wages and risky rates of returns, can be clearly identified.
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherEuropean University Institute
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2009/12en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectIntergenerational Risk Sharing
dc.subjectSocial Security
dc.subjectEx Ante Welfare Improvements
dc.subjectSocial Security Reform
dc.subjectPrice Effects
dc.subjectH55
dc.subjectE62
dc.subjectD91
dc.subjectD58
dc.titleSocial Security and Risk Sharingen
dc.typeWorking Paperen
dc.neeo.contributorGOTTARDI|Piero|aut|EUI70004
dc.neeo.contributorKUBLER|Felix|aut|
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