COHORT-SPECIFIC EFFECTS OF SOCIAL SECURITY POLICY

Abstract
This paper uses a new long-run model of the U.S. economy to analyze the intergenerational equity implications of policies for dealing with projected deficits in the social security program. Concrete policy alternatives are compared using cohort-specific, general-equilibrium measures of changes in lifetime wealth. The policy rankings suggested by our wealth results frequently differ from the rankings suggested by more narrow measures such as internal rates of return on social security taxes and benefits.