As part of his privatization plan to reform Social Security, Nobel laureate Edward Prescott advocated that personal

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As part of his privatization plan to reform Social Security, Nobel laureate Edward Prescott advocated that personal accounts be made mandatory in order to prevent rational individuals from deliberately undersaving [Prescott, 2004a]. Explain how moral hazard could lead people to undersave if Social Security were replaced with voluntary personal accounts.

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Public Finance

ISBN: 9780073511351

9th Edition

Authors: Harvey Rosen, Robert Guell, Ted Gayer

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