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Social Security and Saving: New Time Series Evidence

Feldstein, Martin

Abstract:

Analysis of data from 1930-1992, reconfirms an earlier study that individuals substitute Social Security benefits for personal saving. Each dollar of Social Security wealth reduces private saving by two to three cents. In the aggregate, Social Security reduces overall private saving by nearly 60 percent.

Citation

Feldstein, Martin (1996), Social Security and Saving: New Time Series Evidence, National Tax Journal, 49:2, pp. 151-64