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Social security and future generations

Thøgersen, Øystein; Fehr, Hans
Working paper
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URI
http://hdl.handle.net/11250/163098
Date
2007-12
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  • Discussion papers (SAM) [638]
Abstract
We survey the effects of social security in the form of mandatory public pension programs on the

intergenerational distribution of tax burdens, income, various risks and welfare. The first part

considers basic theoretical concepts and highlight how the intergenerational effects of social security

hinge on three types of major mechanisms: i) Defined benefit vs. defined contribution, ii) pay-as-you-go

financing vs. funding and iii) the strength of the tax-benefit link of the program. The second part of

the survey considers advances in the large literature that offer quantitative assessments of social

security programs and reform proposals by means of numerical overlapping generations models. In

both parts of the survey we distinguish between deterministic models and models that incorporate

various stochastic elements.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2007:38

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