TY  - JOUR
AU  - Razin,Assaf
AU  - Sadka,Efraim
TI  - The Stability and Growth Pact as an Impediment to Privatizing Social Security
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9278
PY  - 2002
Y2  - October 2002
UR  - http://www.nber.org/papers/w9278
L1  - http://www.nber.org/papers/w9278.pdf
N1  - Author contact info:
Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu

Efraim Sadka
Tel Aviv University
Eitan Berglas School of Economics
P.O.B. 39040
Ramat Aviv, Tel Aviv, 69978, ISRAEL
E-Mail: sadka@post.tau.ac.il
AB  - 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.
ER  -