scholarly journals Social Security Reform in a Dynastic Life-Cycle Model with Endogenous Fertility

2009 ◽  
Author(s):  
Radim Bohacek ◽  
Volha Belush
Keyword(s):  
Life Cycle ◽  
Social Security ◽  
Social Security Reform ◽  
Life Cycle Model ◽  
Endogenous Fertility ◽  
Cycle Model

scholarly journals A historical welfare analysis of Social Security: Whom did the program benefit?

10.3982/qe657 ◽  
2019 ◽  
Vol 10 (4) ◽  
pp. 1357-1399 ◽  
Author(s):  
William B. Peterman ◽  
Kamila Sommer
Keyword(s):  
Life Cycle ◽  
Steady State ◽  
Social Security ◽  
Welfare Effects ◽  
Welfare Effect ◽  
Life Cycle Model ◽  
Cycle Model ◽  
The Great Depression ◽  
Standard Life ◽  
Program Benefit

A well‐established result in the literature is that Social Security reduces steady state welfare in a standard life cycle model. However, less is known about the historical quantitative effects of the program on agents who were alive when the program was adopted. In a computational life cycle model that simulates the Great Depression and the enactment of Social Security, this paper quantifies the welfare effects of the program's enactment on the cohorts of agents who experienced it. In contrast to the standard steady state results, we find that the adoption of the original Social Security generally improved these cohorts' welfare, in part because these cohorts received far more benefits relative to their contributions than they would have received if they lived their entire life in the steady state with Social Security. Moreover, the negative general equilibrium welfare effect of Social Security associated with capital crowd‐out was reduced during the transition, because it took many periods for agents to adjust their savings levels in response to the program's adoption. The positive welfare effect experienced by these transitional agents offers one explanation for why the program that may reduce welfare in the steady state was originally adopted.

scholarly journals The Presidents Social Security Plan: How much would you pay to participate?

2011 ◽  
Vol 4 (4) ◽  
Author(s):  
Frank Caliendo ◽  
Allen B. Atkins
Keyword(s):  
Life Cycle ◽  
Social Security ◽  
Life Cycle Model ◽  
Present Value ◽  
Cycle Model ◽  
Rates Of Return ◽  
Social Security Program ◽  
Retirement Accounts ◽  
Long Time ◽  
President Bush

President Bush is in favor of using private retirement accounts to partially replace the current pay-as-you-go social security program.  We use a simple life-cycle model to analyze whether or not private accounts would benefit workers.  "Cash equivalents" are calculated under different assumptions to see how much a worker would be willing to pay to participate in the private account program.  In most circumstances, workers would benefit from the private account program.  Only when market rates of return are very low or a person expects to live for a very long time does the current pay-as-you-go system give a greater present value to a worker.

Roth versus traditional accounts in a life-cycle model with tax risk

2012 ◽  
Vol 12 (1) ◽  
pp. 28-61 ◽  
Author(s):  
MARIE-EVE LACHANCE
Keyword(s):  
Life Cycle ◽  
Social Security ◽  
Risk Reduction ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Retirement Accounts ◽  
Small Risk ◽  
Traditional Account ◽  
Welfare Losses ◽  
Social Security Benefits

AbstractThis paper analytically solves a life-cycle model that compares traditional and Roth retirement accounts. It includes realistic features such as tax deductibility of contributions and taxation of withdrawals, tax bracket structure with deductions, taxation of Social Security benefits, and tax risk at retirement. With current taxes, choosing a traditional account over a Roth creates small welfare losses in only a few cases, largely for those with higher incomes and pensions who are subject to the taxation of Social Security benefits. We also investigate tax variability and find that diversified strategies offer only small risk reduction benefits in our illustrations.

scholarly journals It Sucks to Be Single! Marital Status and Redistribution of Social Security*

2020 ◽  
Author(s):  
Max Groneck ◽  
Johanna Wallenius
Keyword(s):  
Life Cycle ◽  
Life Expectancy ◽  
Social Security ◽  
Marital Status ◽  
Labour Supply ◽  
Life Cycle Model ◽  
Depressing Effect ◽  
Cycle Model ◽  
Marriage Stability ◽  
The Us

Abstract In this article, we study the labour supply effects and the redistributional consequences of the US social security system. We focus particularly on auxiliary benefits, where eligibility is linked to marital status. To this end, we develop a dynamic, structural life cycle model of singles and couples, featuring uncertain marital status and survival. We account for the socio-economic gradients to both marriage stability and life expectancy. We find that auxiliary benefits have a large depressing effect on married women’s employment. Moreover, we show that a revenue neutral minimum benefit scheme would moderately reduce inequality relative to the current US system.

Sign in / Sign up

Export Citation Format

Share Document