Transaction Costs of Privatizing Social Security: Lessons from Abroad
This paper will focus on defining the currenty Social Security's transaction costs and compare it to the transaction cost that will incur with a private account program. By looking at the problems with transaction costs from abroad and looking at the costs that will occur here at home, the following question can be answered; based on transaction costs should the current Social Security program in the United States become privatized? It is important to remember that the estimated transaction costs are controversial; opponents inflate the costs while supporters deflate them. This paper will strictly outlay the sources of transaction costs of different pension programs and use an unbiased approach in determining the cost of the United States switching to private accounts.
Date of Completion
Thompson, Nicole, "Transaction Costs of Privatizing Social Security: Lessons from Abroad" (2005). Economics Theses. 6.