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Social security and private saving : a reexamination of the time series evidence /

A time separable, two period utility function is developed to

Bibliographic Details
Main Author: Yun, Suk-Myung, 1961-
Format: Thesis Book
Language:English
Published: [Place of publication not identified] : [publisher not identified] ; 1997.
Subjects:
Major economics.
Online Access:http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=739839921&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD
Description
Summary:A time separable, two period utility function is developed to
consider the effect of an unfunded social, security program
on private saving. The theoretical results suggest that the
effect of social security benefits on private saving in the
mature phase of the U.S. Social Security program would be to
reduce the saving level of each individual. The concept of
social security wealth is used to estimate the implied effect
of the current U.S. Social Security program on private
saving. The major contribution in constructing the social
security wealth variable is the simultaneous consideration of
both the Medicare part of the U.S. Social Security program
and the budget constraint of an unfunded U.S. system. The
estimation results generated by Johansen's FIML method for
cointegration tests and the estimates found using a
traditional AR(1) correction method are in conflict. This
leaves open the debate over the hypothesis that tile current
U.S. Social Security system has substantially reduced private
savings. My parameters of choice suggest that the deadweight
loss of labor market distortions due to the net OASDHI tax is
about $63.67 billion in 1992. Furthermore, the welfare loss
resulting from the overconsumption of Medicare is about $1.12
billion in 1992, given the assumption that tile moral hazard
of Medicare recipients only induces a 20 percent increase in
medical care demand.
Item Description:Vita.
"Major Subject: Economics".
Physical Description:xi, 216 leaves : illustrations ; 28 cm.
Issued also on microfiche from University Microfilms Inc.
Bibliography:Includes bibliographical references: pages 191-199.