@techreport{d4238494c32c4fd88db4a7e3132a4556,
title = "General-Equilibrium Effects of Privatisation: The Missing Piece in Social Security Reform",
abstract = "This paper analyses the effects of reducing unfunded social security in a closed economy that consists of a service sector and a commodity sector.It is shown that if old agents mainly demand labour intensive services, a modest decrease of the pay-as-you-go pension scheme still raises long-run utility as long as the economy is dynamically efficient.However, entirely privatising the social security system will sooner lead to dynamic inefficiency than in the conventional one-sector model, leading to a different conclusion about the desirability of unfunded pensions.",
keywords = "social security, pensions, privatization, overlapping generations",
author = "{van Groezen}, B.J.A.M. and A.C. Meijdam and H.A.A. Verbon",
note = "Subsequently published in Scottish Journal of Political Economy, 2007 (rt) Pagination: 16",
year = "2002",
language = "English",
volume = "2002-24",
series = "CentER Discussion Paper",
publisher = "Macroeconomics",
type = "WorkingPaper",
institution = "Macroeconomics",
}