A matter of trust
Subtitle: understanding worldwide public pension conversions
By: Kent Smetters, Walter E. Theseira
Contributors: Theseira, Walter E.; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17015; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17015.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.  This paper seeks to explain the key two stylized facts of fundamental reforms to social security systems worldwide: Why have so many countries reformed when traditional systems seem, at first glance, to have a higher probability of delivering a secure retirement income? Why have these reforms been larger in developing countries facing less severe demographic problems? We show that an OLG voter model can answer both questions.  Larger reforms are motivated by a fundamental breakdown in intergenerational trust while smaller reforms are caused by a lack of trust in the ability of the government to save.  Empirical analysis seems to support the model"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/21/2011.

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