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Autor(en):
Harenberg, Daniel; Ludwig, Alexander 
Titel:
Social Security and the Interactions Between Aggregate and Idiosyncratic Risk 
Abstract:
We ask whether a PAYG-financed social security system is welfare improving in an economy with idiosyncratic and aggregate risk. We argue that interactions between the two risks are important for this question. One is a direct interactionin the form of a countercyclical variance of idiosyncratic income risk. The other indirectly emerges over a household's life-cycle because retirement savings contain the history of idiosyncratic and aggregate shocks. We show that this leads to risk interactions,...    »
 
Stichworte:
Arbeitspapier/Diskussionspapier 
Jahr:
2014