Dr. Nektarios examines the principles and criteria under lying public pension programs and assesses the effect of these programs on general economic growth. He begins by discussing the economic rationale of public pensions, then analyzes the influence of economic and demographic variables on the cost of a pension program and the effects of public pension systems on aggregate levels of income and capital stock. Suggesting that Feldstein's social security wealth(SSW) variable overestimates the amount of wealth generated by public pensions, Dr. Nektarios constructs a new SSW variable and uses it to estimate the impact of the u.s. Old Age and Survivors Insurance(OASI) program on capital formation and economic growth in the U.S. economy. The results of his econometric analysis suggest that operation of the OASI program has reduced capital formation by 10to 14 percent.
TABLE OF CONTENTS
part Part 1|54 pages
The Economic Theory of Dynamic Old-Age Pensions
part Part 2|25 pages
The Influence of the Economy on a Pay-As-You-Go System of Pensions
part Part 3|73 pages
The Impact of a Pay-As-You-Go Pension System on the Economy