Resource title

Variable Retirement and the Effects of Social Insurance on Savings, Wealth, and Welfare

Resource image

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Resource description

We construct a Blanchard-style overlapping generations model consisting of long-lived individuals who have uninsurable idiosyncratic risk resulting from uncertain retirement periods and medical costs in retirement. Without social insurance, such individuals must save for these eventualities. We examine the impact of pay-as-you-go social insurance policies (public pensions and medicare coverage) on individual and aggregate consumption, saving, and wealth levels as well as wealth distribution. We also derive expressions for optimal (Pareto improving) social insurance policies.

Resource author

Stephen J. Turnovsky, Neil Bruce

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17928

Resource license

Adapt according to the presented license agreement and reference the original author.