Time-inconsistent preferences and social security

• 成果类型: Article
• 署名作者: Imrohoroglu, A; Imrohoroglu, S; Joines, DH
• 署名单位: University of Southern California
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1162/003355303321675509
• 发表日期: 2003
• 页码: 745-784
• 关键词: RISK-SHARING IMPLICATIONS; retirement; consumption; constraints; BEHAVIOR

摘要

In this paper we examine the role of social security in an economy populated by overlapping generations of individuals with time-inconsistent preferences who face mortality risk, individual income risk, and borrowing constraints. We find that unfunded social security lowers the capital stock, output, and consumption for consumers with time-consistent or time-inconsistent preferences. However, it may raise or lower welfare depending on the strength of time inconsistency.