Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099540 | Journal of Economic Dynamics and Control | 2011 | 8 Pages |
Abstract
Ä°mrohoroÄlu et al. (2003) prove that it is impossible in a three period partial equilibrium model for social security to improve the welfare of a naive quasi-hyperbolic agent if the program has a negative net present value. This paper first generalizes their impossibility theorem to a continuous time setting and then proves analytically that no discount function exists that can rationalize a social security program with a negative net present value.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Frank N. Caliendo,