Benutzer: Gast  Login
Titel:

Social Security and the Interactions Between Aggregate and Idiosyncratic Risk

Autor(en):
Harenberg, Daniel; Ludwig, Alexander
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
 BibTeX