Caucutt, Elizabeth; Cooley, Thomas - Society for Economic Dynamics - SED - 2004
We investigate why social security arose when it did in the United States to replace family based old-age care. We … support for social security. To address these issues we construct a simple, two-sector (farm and city), three … future. Output in the city is produced with labour and capital. A social security system that imposes a lump sum tax on the …