@techreport{NBERw9278,
 title = "The Stability and Growth Pact as an Impediment to Privatizing Social Security",
 author = "Assaf Razin and Efraim Sadka",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9278",
 year = "2002",
 month = "October",
 URL = "http://www.nber.org/papers/w9278",
 abstract = {The aging of the population shakes the confidence in the economic viability of pay-as-you-go social security systems. We demonstrate how in a political-economy framework the shaken cofidence leads to the downsizing of the social security-system, and to the emergence of supplemental individual retirement programs. Lifting the Stability-Pact type ceiling on fiscal deficits is shown to facilitate the transition from a national to a private pension system, through an endogenously determined shift in the median voter.},
}