TY  - JOUR
AU  - Hubbard,R. Glenn
TI  - Social Security and Household Portfolio Allocation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1361
PY  - 1987
Y2  - December 1987
UR  - http://www.nber.org/papers/w1361
L1  - http://www.nber.org/papers/w1361.pdf
N1  - Author contact info:
R. Glenn Hubbard
Graduate School of Business
Columbia University, 101 Uris Hall
3022 Broadway
New York, NY  10027
Tel: 212/854-3493
Fax: 212/864-6184
E-Mail: rgh1@columbia.edu, ws2187@columbia.edu
AB  - The entitlement to social security retirement benefits is a major component of aggregate household wealth. This paper focuses on the impact of social security annuities on household portfolio allocation, extending existing optimizing models of portfolio allocation to explicitly consider the role of social security. The model is implemented using cross-section data. The partial equilibrium impacts of changes in social security benefits on portfolio choice and composition are small but precisely measured. The general equilibrium impacts on asset markets of a social security policy change (focusing onlinks between social security and dynamic wealth accumulation and between social security benefits and private pension benefits) are generally much larger.
ER  -