Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5067105 | European Economic Review | 2012 | 24 Pages |
Abstract
⺠We analyze the effects of social security in a dynastic framework with temptation. ⺠Temptation distorts individuals' savings and triggers self-control costs. ⺠Altruism mitigates the adverse saving effects but magnifies the self-control costs. ⺠Pay-as-you-go social security works as a self-control cost reducing device. ⺠The welfare outcome depends on interactions between altruism and temptation.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Cagri S. Kumru, Chung Tran,