Huggett, Mark; Parra, Juan Carlos - In: Journal of Political Economy 118 (2010) 1, pp. 76-112
We analyze the insurance provided by the U.S. social security and income tax system within a model in which agents receive idiosyncratic, wage rate shocks that are privately observed. We consider two reforms: a piecemeal reform that optimally chooses the social security benefit function and a...