Social security wealth system effect on final consumption

This book investigates the impact of the social security system on final consumption , with the overlapping generations model for Macedonia and panel of countries.A social security system covers pension insurance,health insurance,and employment contribution As hypothesis we set that social security reduces saving. Our results show that in all our models the average growth of social contributions increases final consumption,thereby reducing savings.In the models presented in this book consumption is a function of available income ,the change in disposable income,then the social security contributions per income and social wealth which is a proxy variable of gross capital formation, i.e. total human wealth.