Analysis and discussion of Social Security policy are usually based on expected fiscal and societal outcomes. However, future demographic and economic trends are uncertain, and thus ultimate outcomes for aggregate system financial flows and the distribution of taxes and benefits across generations are uncertain. This paper analyzes a state-dependent approach to policy in which future Social Security benefit formulas are tied to realized economic and demographic outcomes over time.
Uncertain Policy for an Uncertain World: The Case of Social SecurityJohn Sabelhaus, Julie Topoleski ,
3( 26 )
Journal of Policy Analysis and Management