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4/22/2004: Economist Assesses Social Security Using a 'Real' Trust Fund (National Bureau of Economic Research [NBER])
Working paper. Excerpt: In this paper we investigate why and to what extent the government should have a social security trust fund, and how it should manage the fund in the face of demographic shocks, based on a simple overlapping-generations model. We show that, given an aging population, a trust fund in some form could achieve the (modified) golden rule or to offset the negative income effect of a PAYGO system.
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