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Social Security in an Analytically Tractable Overlapping Generations Model with Aggregate and Idiosyncratic Risk
When markets are incomplete, social security can partially insure against idiosyncratic and aggregate risks. We incorporate both risks into an analytically tractable model with two overlapping generations. We derive the ...
On the Optimal Provision of Social Insurance
In this paper we compute the optimal tax and education policy transition in an economy where progressive taxes provide social insurance against idiosyncratic wage risk, but distort the education decision of households. ...