Social security and private saving: another look.

In May 1978, the Social Security Bulletin published an article, “Effect of Social Security on Saving: Review of Studies Using U.S. Time-Series Data,” by Louis Esposito, Division of Economic and Long-Range Studies, Office of Research and Statistics, Social Security Administration. The author reviewed four major empirical studies that investigated the effect of the social security program on aggregate private saving. He concluded that none of the studies support the hypothesis that the social security system decreases private saving. Because the author drew upon the research of four other economists, it was felt that they, in turn, should be permitted to comment on the conclusions drawn from their work. What follows are the responses of Robert J. Barro, Michael Darby, Martin Feldstein, and Alicia Munnell to a Social Security Administration inquiry about their reactions to the Esposito article.