Librería Samer Atenea
Librería Aciertas (Toledo)
Kálamo Books
Librería Perelló (Valencia)
Librería Elías (Asturias)
Donde los libros
Librería Kolima (Madrid)
Librería Proteo (Málaga)
Social Security rules have changed constantly since its creation, generatingdifferent outcomes across cohorts, race and gender. A look at the history ofsocial security in the US and Germany provides substantial evidence of policyrisk in their pay-as-you-go systems. This does not only impose welfare costson the population, but also has important wealth accumulation and portfoliochoice consequences. Using the history of policy changes, estimates of thepotential welfare costs to the US population are presented. This book alsoexplores the effects of policy risk on wealth accumulation, both looking at theeffects the 1984 social security reform in the US could have had onindividuals’ wealth accumulation, as well as using aggregate data to estimatethe impact of social security wealth and risk on savings. The evidence obtainedsuggests that there is an important substitution between social securitywealth and financial wealth, and that people exposed to larger policyuncertainties accumulate more financial wealth. Results imply that accountingfor policy risk greatly improves our understanding of the real effects ofretirement programs.
