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Optimal Design Of Social Security Reforms - Econ Umn
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ABSTRACT We argue that a privatization of the social security system, going from a Pay-As-YouGo to a Fully Funded system, can be interpreted as the explicit recognition of an implicit debt and there is no efficiency gain in doing so. As a consequence, potential efficiency gains upon reforming the system come from the elimination of distortions and the optimal management of that implicit debt. Based on that argument, this pa.
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