The transition from a-pay-as-you-go to a fully-funded Social Security System: is there a role for social insurance?

  title={The transition from a-pay-as-you-go to a fully-funded Social Security System: is there a role for social insurance?},
  author={Patricia S. Pollard and Rowena A. Pecchenino},
This paper develops a model to examine the effects of introducing a fully-funded government sponsored pension plan into an overlapping generations model with an extant pay-as-you-go social security system. We examine whether individual and social welfare can be improved by phasing out the current pay-as-you-go system and replacing it with a fully-funded system in which pension benefits are at least partially annuitized. Furthermore, we consider the effects of means testing social security… 
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