Privatizing U.S. Social Security: Some Possible Effects on Intergenerational Equity and the Economy
This article uses simulations in a stylized model—the Auerbach-Kotlikoff Dynamic Life Cycle model—to explore some possible economic outcomes of privatizing Social Security in the United States: first, the potential impact on the macro economy; second, how different generations may be affected (in particular, whether privatization will enhance or undermine intragenerational equity); and, third, some efficiency gains that might arise from privatization.