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