SOCIAL SECURITY AND DEMOGRAPHICS IN A LIFE CYCLE GROWTH MODEL

Abstract

This paper uses a life cycle growth model to analyze the following questions: Suppose there is a permanent decline in the growth rate of population, or of productivity; or an increase in the age of death. What would be the impact on the steady-state of the economy, and of the "pay-as-you-go" Social Security (SS) program? Specifically, what would be the long-run impact on the capital intensity and saving rate of the economy? What would be the effect on the implicit return to an individuals SS "saving," and on the SS "replacement rate"—the ratio of the SS benefit to the wage in the economy? Finally, if the replacement rate would decline, can the initial rate be restored by raising either the SS tax rate, or the SS retirement age? If so, what difference does it make, for the steady-state of the economy, which method of restoration is used?

Cite this work

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

Stored only when both papers are in the corpus — 10 citations exist upstream.

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