Welfare and comparative statics implications of fair social security. A steady-state analysis

Edi Karni*, Itzhak Zilcha

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

This paper examines the steady-state welfare and comparative statics implications of fair social security in an overlapping generations model with uncertain lifetime. The model is designed to capture the effects of lifetime uncertainty extending over the individual's entire lifespan, the effects of intentional and unintentional bequests, and the effects of the earning profile. He shows that the welfare effects depend on the size of the benefits and the structure of the social security tax. In particular, even fair social security may have negative welfare implications if the underlying tax structure is ill-designed. Some comparative statics implications are analyzed.

Original languageEnglish
Pages (from-to)341-357
Number of pages17
JournalJournal of Public Economics
Volume30
Issue number3
DOIs
StatePublished - Aug 1986

Funding

FundersFunder number
National Science FoundationSES 8408670

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