Privatizing Social Security

Cooley, Thomas F.; Soares, Jorge

doi:10.1006/redy.1999.0069

Cited by 40 publications

(24 citation statements)

References 9 publications

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“…3.1, the peaks are only one period later, because young individuals in the PAYG 23 The government in the PAYG country may decide to implement the pension reform in this way for political economy reasons. For example, when it is assumed, as in Cooley and Soares (1999), that a reform is only implementable in case it is welfare-improving for a majority of the current population. 24 More details and a formal proof of this result are given in Appendix B.2.…”

Section: Results 5 In Case There Is Full Compensation For the Elderly mentioning

confidence: 99%

“…Political economy arguments could also play a role for implementing such a reform policy. Cooley and Soares (1999), for example, argue that privatizing a PAYG system is only politically feasible in case a transition policy uses debt to finance the benefits during the transition period, shifting at least part of the cost to future generations. Therefore, in this and the next subsection, we assume that while contributions to the PAYG scheme fall permanently at t = 0, benefits are kept constant in that period.…”

Section: Compensationmentioning

confidence: 99%

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The international spillover effects of pension reform

Adema

Meijdam

Verbon

2008

Int Tax Public Finance

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This paper explores how pension reforms in countries with PAYG schemes affect countries with funded systems. We use a two-country two-period overlappinggenerations model, where the countries only differ in their pension systems. We distinguish between the case where a reform potentially leads to a Pareto improvement in the PAYG country, and where this is impossible. In the latter case, the funded country shares both in the costs and the benefits of the reform. However, if a Paretoimproving pension reform is feasible in the PAYG country, a Pareto improvement in the funded country is not guaranteed.Keywords International spillover effects · Pension reform JEL Classification F21 · F41 · F47 · H55 · H63

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Section: Results 5 In Case There Is Full Compensation For the Elderly mentioning

confidence: 99%

Section: Compensationmentioning

confidence: 99%

The international spillover effects of pension reform

Adema

Meijdam

Verbon

2008

Int Tax Public Finance

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“…5 For simulations with no mortality risk, the annual discount parameter, β, varies and has been set between 1 and 0.96 (as examples, see [34][35][36]). While some empirical estimates for the risk aversion parameter, σ, have exceeded 6, simulation values for σ tend to stay in the range of 1 to 5, deemed a plausible range by economists [28,[34][35][36][37][38]]. The discount rate and level of risk aversion were varied in an attempt to calibrate the model, so that agents upon entry into the labour market prefer voluntary sickness insurance coverage that lasts between three and seven years.…”

Section: Saving Over the Lifecycle With Sickness Riskmentioning

confidence: 99%

Why Did Americans Reject Compulsory Health Insurance after WWI? An Application of the Lifecycle Model

Wilson

Emery

2012

Economics Research International

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Progressive reformers failed to gain support to implement compulsory health insurance in the US after WWI. Modeling results presented in this paper, using a lifecycle model with sickness risk and precautionary savings, support the conclusion that existing voluntary insurance plans were adequate and welfare-enhancing in the US, that compulsory health insurance as proposed would not be welfare-enhancing, and that Americans' preference to self-insure during most of their working lives was rational, utility-maximizing behaviour.

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“…Other quantitative political economy models of social security reforms includeCooley and Soares (1999) as well asGalasso (1999), among others.…”

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confidence: 99%