by American Enterprise Institute for Public Policy Research in Washington .
Written in English
Includes bibliographical references.
|Statement||Robert J. Barro ; with a reply by Martin Feldstein.|
|Series||Studies in social security and retirement policy, AEI studies ; 199, AEI studies ;, 199.|
|Contributions||Feldstein, Martin S., joint author.|
|LC Classifications||HD7125 .B33|
|The Physical Object|
|Pagination||47 p. ;|
|Number of Pages||47|
|LC Control Number||78016945|
support the hypothesis that social security has reduced private saving. Theoretical Considerations Argument for Social Security Reducing Saving Saving for retirement. The proposition that social se- curity reduces private saving is based on the view that al- . evidence to estimate Social Security‟s impact on private savings. Essential to these studies is the use of a “Social Security Wealth” (SSW) variable, created by Martin Feldstein (), which defines the present value of future discounted Social Security benefits for the entire population under the assumption that each working person retiresAuthor: Wade Donald Pfau. The extended life-cycle model shows that the impact of social security on private savings depends on two opposing effects: wealth replacement and induced retirement. The net impact can be determined only empirically. The current study uses data for a cross-sectional sample of developed countries so as to evaluate both by: Feldstein: w Social Security and Saving: New Time Series Evidence: Feldstein: w The Effect of Social Security on Saving: Auerbach and Kotlikoff: w An Examination of Empirical Tests of Social Security and Savings: Bernheim and Scholz: Private Saving and Public Policy: Feldstein: w International Differences in Social Security and Saving.
The author reviewed four major empirical studies that investigated the effect of the social security program on aggregate private saving. He concluded that none of the studies support the hypothesis that the social security system decreases private saving. The introduction of social security can affect private savings in at least two different ways: on the one hand, it might induce households to reduce their precautionary savings; one the other hand, it might give people a reason to reflect on their financial needs at old age or when sick, thereby increasing their motivation to accumulate private savings. Social Security has spared pensioners from the adverse effects of major jumps in inflation, because benefit payments are indexed. If workers were forced to buy annuities from private firms, this. En español | Social Security is a critical federal program that promotes income stability among households in the United States. It does so by providing a steady stream of income to replace lost wages due to retirement, disability, or death. The role that Social Security benefits play in the economic security of the 57 million people who received it in is well known, but its importance.
Although there have been several studies of the effect of social security on private saving, there has been no attempt to measure the welfare cost of this distortion. The present paper develops an analytic framework for this evaluation and presents numerical calculations. Downloadable! Ã¢Â€ÂœThe Impact of Social Security on Private Saving: Evidence from the U.S. Time Series,Ã¢Â€Â by Robert J. Barro, with a reply by Martin Feldstein, is the first of a series of studies of the effect of social security on saving and capital formation.Ã‚Â It sheds more light on the dispute begun in when Martin FeldsteinÃ¢Â€Â™s startling research showed that social security . Private accounts provide for the forced saving that is desired but additionally allow consumer sovereignty, especially for the majority of individuals who would not choose to save as much in the Social Security–like asset as the government currently requires. Impact of social security on private saving. Washington: American Enterprise Institute for Public Policy Research, © (OCoLC) Online version: Barro, Robert J. Impact of social security on private saving. Washington: American Enterprise Institute for Public Policy Research, © (OCoLC) Document Type: Book: All Authors.