Paul L. Caron

Wednesday, November 20, 2019

Phillips & Nelson Present Macroeconomic Effects Of Reducing OASI Benefits Today At Penn

Kerk Phillips (CBO) & Jaeger Nelson (CBO) present Macroeconomic Effects of Reducing OASI Benefits: A Comparison of Seven Overlapping-Generations Models at Pennsylvania today as part of its Tax Law and Policy Workshop Series hosted by Michael Knoll, Chris Sanchirico, and Reed Shuldiner:

CBOIn this paper we evaluate the effects of a reduction in Social Security’s Old-Age and Survivors Insurance (OASI) benefits using seven different quantitative general equilibrium overlapping-generations (OLG) models. We compare the effects of an anticipated one-third reduction in OASI benefits beginning in 2031 on an economy that maintains currently scheduled benefits. We find many of the models generate qualitatively similar results concerning budgetary and macroeconomic aggregates; however, the magnitude of the effects varies owing to the models’ structure and calibration strategies.

Discussing Authors:

  • Seth G. Benzell (Boston University)
  • Efraim Berkovich (Penn Wharton)
  • Robert Carroll (Ernst & Young, Washington, D.C.)
  • Jason DeBacker (South Carolina)
  • John Diamond (Rice)
  • Richard Evans (Chicago)
  • Jagadeesh Gokhale (Penn Wharton)
  • Laurence Kotlikoff (Boston University
  • Guillermo LaGarda (Boston University)
  • James Mackie (Ernst & Young, Washington, D.C.)
  • Rachel Moore (Joint Committee on Taxation)
  • Brandon Pecoraro (Joint Committee on Taxation)
  • Brandon Pizzola (Ernst & Young, Washington, D.C.)
  • Victor Yifan Ye (Boston University)
  • George Zodrow (Rice University)

Penn Figure 3

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