Studying Generational Risk in a Large-Scale Life-Cycle Model

Wed, 01 Jan 2025 00:00:00 +0000

Hasanhodzic and Kotlikoff ask a question prior work assumed away: how large is generational risk, and can pay-go Social Security actually mitigate it? Earlier studies (Diamond, Bohn, Krueger-Kubler, etc.) presumed generational risk is large enough to merit policy and showed Social Security can in principle share it, but did not directly measure its size. This paper measures it directly, with and without Social Security, in a realistically large overlapping-generations (OLG) model.

Jasmina Hasanhodzic | Macro Paper Warehouse

Studying Generational Risk in a Large-Scale Life-Cycle Model