Is social security behind the collapse of personal saving?

Arbeitspapier

This paper considers the quantitative role of growth in the size of the social security program in contributing to the collapse of personal saving in the U.S. over the last few decades. Using a calibrated, general equilibrium life-cycle model this paper shows that social security may not be to blame. Specifically, the model predicts that a 50-percent increase in the social security tax rate (as in the U.S. over the last half century) produces a modest decline in the personal saving rate from 10 percent down to 9.6 percent. This result runs counter to some popular opinion.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2746

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Social Security and Public Pensions
• Subject: NIPA personal saving rate ; social security ; life-cycle permanent-income model ; general equilibrium calibration ; Sozialversicherungsbeitrag ; Sparen ; Einkommenshypothese ; Allgemeines Gleichgewicht

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Caliendo, Frank N.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30451
• Last update: 10.03.2025, 11:41 AM CET