A Note on Resource Testing and Temptation

Authors

• Cagri Kumru
• John Piggott

Abstract

This study analyzes the relative performance in terms of welfare of the current U.S. PAYG system compared to an array of cost equivalent alternative specifications of means-tested pension programs. We conduct our analysis under two different settings. While in the first setting, individuals have standard preferences, in the second setting individuals have self-control preferences. We show that the implications of the reform substantially differs across the two settings.

Citation

Kumru, Cagri S., John Piggott, and Athanasios C. Thanopoulos. 2015. "A Note on Resource Testing and Temptation." Ann Arbor, MI. University of Michigan Retirement Research Center (MRRC) Working Paper, WP 2016-340. https://mrdrc.isr.umich.edu/publications/papers/pdf/wp340.pdf

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Project

• UM15-14: Means-testing Social Security: Modelling and Policy Analysis

Paper ID

WP 2016-340

Publication Type

Working Paper

Publication Year

2016