Social Security Investment in Equities

Social Security Investment in Equities

This paper explores the general-equilibrium impact of social security portfolio diversiŽ cation into private securities, either through the trust fund or private accounts. The analysis depends critically on heterogeneities in saving, production, assets, and taxes. Limited diversiŽcation weakly increases interest rates, reduces the expected return on short-term investment (and the equity premium...

Investing Social Security Assets in Equities: Rebuttal

Investing The Social Security Trust Funds In Equities

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SOCIAL SECURITY INVESTMENT IN EQUITIES BY PETER DIAMOND and JOHN GEANAKOPLOS COWLES FOUNDATION PAPER NO. 1070 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Investment of Social Security reserves in three countries.

The current buildup of the U.S. Social Security Trust Fund has caused speculation about both the potential consequences of the buildup under different policy objectives and the fund's management. As is often the case, the search for precedents under similar circumstances abroad has been quite extensive on the part of legislators and U.S. experts in the field of financial policy. This article su...