Social security and risk sharing

• 成果类型: Article
• 署名作者: Gottardi, Piero; Kubler, Felix
• 署名单位: European University Institute; Universita Ca Foscari Venezia; University of Zurich
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2010.10.014
• 发表日期: 2011
• 页码: 1078-1106
• 关键词: Intergenerational risk sharing; Social Security; Ex ante welfare improvements; Social Security reform; Price effects

摘要

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 OLG economy with capital accumulation and land. We argue that these conditions are consistent with realistic specifications of the parameters of the economy. In our model financial markets are complete and competitive equilibria interim Pareto efficient. Therefore, a welfare improvement can only be obtained if agents' welfare is evaluated ex ante, and arises from an improvement in intergenerational risk sharing. We also examine the optimal size of a given social security system as well as its optimal reform. (C) 2010 Elsevier Inc. All rights reserved.