3. a) What is the difference between funded and unfunded social security system? b) Can the economy with any social security system Pareto dominate the competitive equilibrium without social security? Justify your answer using an overlapping generations model.

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST2: The Economics Of Social Security
Section: Chapter Questions
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3. a) What is the difference between funded and unfunded social security system?
b) Can the economy with any social security system Pareto dominate the competitive
equilibrium without social security? Justify your answer using an overlapping generations model.
Transcribed Image Text:3. a) What is the difference between funded and unfunded social security system? b) Can the economy with any social security system Pareto dominate the competitive equilibrium without social security? Justify your answer using an overlapping generations model.
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