Intergenerational risk sharing in the spirit of Arrow, Debreu, and Rawls, with applications to social security design

被引:49
作者
Ball, Laurence [1 ]
Mankiw, N. Gregory
机构
[1] Johns Hopkins Univ, Baltimore, MD 21218 USA
[2] Harvard Univ, Cambridge, MA 02138 USA
关键词
D O I
10.1086/520646
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if generations behind a Rawlsian "veil of ignorance" could share risk with one another through complete Arrow-Debreu contingent- claims markets. The paper then examines how the government might implement optimal intergenerational risk sharing with a social security system. One conclusion is that the system must either hold equity claims to capital or negatively index benefits to equity returns.
引用
收藏
页码:523 / 547
页数:25
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