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035   $a(NBER)w6219
035   $a(CKB)3240000000022055
035   $a(EXLCZ)993240000000022055
100   $a20230622d1997      fy             0
101 0 $aeng
135   $aurcnu||||||||
200 10$aDiscount Rate Heterogeneity and Social Security Reform /$fAndrew A. Samwick
210   $aCambridge, Mass$cNational Bureau of Economic Research$d1997
215   $a1 online resource$cillustrations (black and white);
225 1 $aNBER working paper series$vno. w6219
300   $aOctober 1997.
330 3 $aAs many countries consider the privatization of existing pay-as-you-go Social Security systems, the option to make participation in the new system voluntary may appeal to policy makers who need to obtain the political support of their workers. A critical issue in evaluating such a reform and its economic consequences is the unobserved heterogeneity in households' preferences for consumption.  This paper estimates the distribution of rates of time preference from the wealth data in the Survey of Consumer Finances 1992 and a flexible life-cycle model of consumption under income uncertainty.  The estimated distribution is then applied to a variety of reform proposals that incorporate a voluntary choice of how much to contribute to a dedicated retirement account and a rebate of the existing payroll tax that increases with the magnitude of the contribution.  The main finding is that an appropriate menu of reform plans can induce the voluntary buy out of 84 percent of existing payroll taxes at an immediate cost to national saving of less than 0.25 percentage point.
410  0$aWorking Paper Series (National Bureau of Economic Research)$vno. w6219.
606   $aSocial Security and Public Pensions$2jelc
606   $aConsumption ? Saving ? Wealth$2jelc
615  7$aSocial Security and Public Pensions
615  7$aConsumption ? Saving ? Wealth
686   $aH55$2jelc
686   $aE21$2jelc
700   $aSamwick$b Andrew A$0127782
712 02$aNational Bureau of Economic Research.
801  0$bMaCbNBER
801  1$bMaCbNBER
906   $aBOOK
912   $a9910693594803321
996   $aDiscount Rate Heterogeneity and Social Security Reform$93388754
997   $aUNINA