Means-testing Social Security: Modelling and Policy Analysis

This proposal seeks to carry forward research into means testing social security structures and age pension programs through macroeconomic modelling and policy analysis. We will use models calibrated to both the Australian and US economies. Australia has a long-established affluence-tested age pension. While most of the effort will be directed towards modelling means testing in the context of large scale macroeconomic structures, a research strand will be devoted to a more general discussion of international developments in means tested programs. This will allow a contextualised interpretation of the major findings from the modelling, as well as discussion of issues best dealt with outside a modelling frame, such as administrative costs and compliance.