𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Uncertain inflation and social security indexation

✍ Scribed by Sheng Cheng H.U.

Publisher
Elsevier Science
Year
1987
Tongue
English
Weight
646 KB
Volume
11
Category
Article
ISSN
0165-1889

No coin nor oath required. For personal study only.

✦ Synopsis

This paper provides a theoretical analysis of the effects of the insurance feature of social security indexation on portfolio allocation and the stability of income and consumption of the retiree within the framework of a life-cycle model of allocation under uncertainty. The paper shows that the magnitudes of such effects depend on the importance of social security in total wealth, the covariance of real portfolio returns with the inflation rate and, more importantly, whether there exists market failure in providing for inflation insurance.

πŸ“œ SIMILAR VOLUMES

EU enlargement and social security
EU enlargement and social security
✍ Winfried SchmΓ€hl πŸ“‚ Article πŸ“… 2004 πŸ› Springer-Verlag 🌐 English βš– 799 KB
Social security and strategicinter-vivos
Social security and strategicinter-vivostransfers of social capital
✍ Kai A. Konrad πŸ“‚ Article πŸ“… 1995 πŸ› Springer 🌐 English βš– 761 KB

"This paper explains public provision of social capital in an overlapping generations model with 'gerontocracy', without resort to any bequest motive. The old generation has an incentive to provide education and infrastructure because these goods shift the Laffer curve of social security taxation, t