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dc.contributor.authorLaitner, John P.
dc.contributor.authorSilverman, Daniel
dc.date.accessioned2007-02-12T20:37:21Z
dc.date.available2007-02-12T20:37:21Z
dc.date.issued2006-11
dc.identifier.urihttps://hdl.handle.net/2027.42/49376
dc.description.abstractThis paper analyzes the effect of a potential reform to the Social Security system on individuals’ retirement and consumption choices. We first estimate the coefficients for a life-cycle model. We assume intratemporally nonseparable preference orderings and endogenous retirement. Our framework allows the possibility of disability. The specification predicts a change in consumption at retirement; we use the empirical magnitude of the change, together with desired retirement age, to identify key parameters such as the curvature of the utility function. We then qualitatively and quantitatively study the possible long-run effect of a Social Security reform in which individuals no longer face the OASI payroll tax after some specified age, and their subsequent earnings have no bearing on their Social Security benefits. Simulations indicate that retirement ages would rise by as much as one year, equivalent variations could average $5000 (1984 dollars) per household or more, and reform could generate $2500 or more additional income tax revenue per household.en
dc.description.sponsorshipSocial Security Administrationen
dc.format.extent434499 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoen_USen
dc.publisherMichigan Retirement Research Center, University of Michigan, P.O. Box 1248, Ann Arbor, MI 48104en
dc.relation.ispartofseriesUM 2006-142en
dc.titleConsumption, Retirement, and Social Security: Evaluating the Efficiency of Reform with a Life-Cycle Model.en
dc.typeWorking Paperen
dc.subject.hlbsecondlevelPopulation and Demography
dc.subject.hlbtoplevelSocial Sciences
dc.contributor.affiliationumThe University of Michigan Retirement Research Centeren
dc.contributor.affiliationumInstitute for Social Research
dc.contributor.affiliationumcampusAnn Arboren
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/49376/1/wp142.pdfen_US
dc.owningcollnameRetirement Research Center, Michigan (MRRC)


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