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The Stability and Growth Pact as an Impediment to Privatizing Social Security

Опубликовано на портале: 27-10-2004
NBER Working Paper Series. 2002.  w9278.
The aging of the population shakes the confidence in the economic viability of pay-as-you-go social security systems. We demonstrate how in a political-economy framework the shaken cofidence leads to the downsizing of the social security-system, and to the emergence of supplemental individual retirement programs. Lifting the Stability-Pact type ceiling on fiscal deficits is shown to facilitate the transition from a national to a private pension system, through an endogenously determined shift in the median voter.

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http://www.nber.org/papers/w9278
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