Use the social security model developed in this chapter to answer this question. Suppose that the government
Question:
(a) Show using diagrams that the young and old alive at time T all benefit from the social security program under any circumstances.
(b) What is the effect of the social security program on consumers born in periods T + 1 and later? How does this depend on the real interest rate and the population growth rate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: