MACROECONOMIC EFFECTS OF REDUCING OASI BENEFITS A COMPARISON OF SEVEN OVERLAPPING-GENERATIONS MODELS

In this paper, we evaluate the effects of a reduction in Social Security's Old-Age and Survivors Insurance (OASI) benefits using seven different quantitative general equilibrium overlapping-generations (OLG) models. We compare the effects of an anticipated one-third reduction in OASI benefits b...

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Bibliographic Details
Published inNational tax journal Vol. 72; no. 4; pp. 671 - 692
Main Authors Nelson, Jaeger, Phillips, Kerk, Benzell, Seth G, Berkovich, Efraim, Carroll, Robert, DeBacker, Jason, Diamond, John, Evans, Richard, Gokhale, Jagadeesh, Kotlikoff, Laurence, LaGarda, Guillermo, Mackie, James, Moore, Rachel, Pecoraro, Brandon, Pizzola, Brandon, Ye, Victor Yifan, Zodrow, George
Format Journal Article
LanguageEnglish
Published Chicago National Tax Association 01.12.2019
University of Chicago Press
Subjects
Benefits
Calibration
Impact analysis
Insurance
Macroeconomics
OASDHI
Social security
Studies
Survivors' benefits
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Summary:In this paper, we evaluate the effects of a reduction in Social Security's Old-Age and Survivors Insurance (OASI) benefits using seven different quantitative general equilibrium overlapping-generations (OLG) models. We compare the effects of an anticipated one-third reduction in OASI benefits beginning in 2031 on an economy that maintains currently schedided benefits. We find many of the models generate qualitatively similar results concerning budgetary and macroeconomic aggregates; however, the magnitude of the effects varies owing to the models' structure and calibration strategies.
ISSN:0028-0283
1944-7477
DOI:10.17310/ntj.2019.4.02