Evaluating pay-as-you-go social security systems

Bachmann, Andreas; Wüthrich, Kaspar (July 2015). Evaluating pay-as-you-go social security systems (Discussion Papers 15-07). Bern: Department of Economics

[img]
Preview
Text
dp1507.pdf - Published Version
Available under License Creative Commons: Attribution (CC-BY).

Download (647kB) | Preview

This paper proposes a method for the welfare analysis of pay-as-you-go social security
systems. We derive a formula for the welfare consequences of a permanent marginal change
in the payroll tax rate that is valid under weak assumptions about the deep structure of the
economy. Our approach requires neither a full specification of preferences and technology,
nor knowledge of the individual savings behavior. Instead of parameterizing and calibrating
the deep model structure, we implement our formula based on reduced form estimates of
a VAR model. We apply our method to evaluate the social security system in the United
States.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Bachmann, Andreas and Wüthrich, Kaspar

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

Discussion Papers

Publisher:

Department of Economics

Language:

English

Submitter:

Lars Tschannen

Date Deposited:

26 Feb 2021 14:49

Last Modified:

26 Feb 2021 14:49

JEL Classification:

E62, H55

BORIS DOI:

10.48350/145816

URI:

https://boris.unibe.ch/id/eprint/145816

Actions (login required)

Edit item Edit item
Provide Feedback