Social Security, Uncertainty Adjustments and the Consumption Decision

Dean R. Leimer · David H. Richardson

27 citations0/0 files storedEconomica

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Literacy, Pension, Retirement Analysis Economic and Fiscal Studies Retirement, Disability, and Employment

Abstract

This paper analyzes the consumption decision, focusing on the degree of substitutability between fungible assets and prospective wealth and on the different risk adjustments associated with different types of prospective wealth. The results reveal substantial differences among these risk adjustments and imply that a dollar of social security wealth substitutes for about three-fifths of a dollar of fungible assets. Although implying that social security wealth reductions would have a positive and sizeable effect on private saving, the results also suggest that such reductions could entail a substantial loss in consumer welfare. Copyright 1992 by The London School of Economics and Political Science.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 27 citations exist upstream.

References

1974Social Security, Induced Retirement, and Aggregate Capital Accumulation 1989Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence 1966The Social Insurance Paradox 1990The Cost of Annuities: Implications for Saving Behavior and Bequests 1985Precautionary Saving and Accidental Bequests 1982Social Security and Private Saving: New Time-Series Evidence 1987Social Security and Individual Welfare: Precautionary Saving, Borrowing Constraints, and the Payroll Tax 2016Testing the Theory of Social Security and Life Cycle Accumulation

Cited by

1998The Effects of Social Security Privatization on Household Saving: Evidence from the Chilean Experience 2014Effects of Social Security Reform on Private and National Saving

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.