Investing U.S. Social Security Trust Fund Assets in Private Securities

Author/Editor:

Michael P. Leidy

Publication Date:

September 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the macroeconomic and distributional consequences of a policy change, other things being equal, that would allow U.S. Social Security trust fund assets to be invested in private securities. Improving the expected return to trust fund assets, by shifting these from government bonds to private securities, tends to reduce (increase) the future claim on national output of the current (future) working population. The effects on aggregate saving and future output depend on whether current workers interpret this policy change as affecting their future Social Security benefits.

Series:

Working Paper No. 97/112

Subject:

English

Publication Date:

September 1, 1997

ISBN/ISSN:

9781451853568/1018-5941

Stock No:

WPIEA1121997

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

28

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