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March/April 1998, 
Vol. 80, No. 2
Posted 1998-03-01

Privatizing U.S. Social Security: Some Possible Effects on Intergenerational Equity and the Economy

by Laurence J. Kotlikoff

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.