Social Security and saving: A time-series econometrics pedagogical example (with R code)
Document Type
Article
Department or Administrative Unit
Economics
Publication Date
12-4-2017
Abstract
In 1974, and then again in 1996, Martin Feldstein published studies of the impact of the Social Security system on private saving in the U.S. economy. He found that Social Security depressed personal saving by a substantial amount—up to 50 percent. The author uses the Feldstein data and empirical models in this article to illustrate the steps in analyzing distributed lag problems. These particular data and methods exemplify, among other things, unit roots, autocorrelated residuals, spurious regression, trend breaks, and cointegration. As such, they provide an excellent pedagogical case study. All R code for this article is provided so that students may replicate and extend the included models and results.
Recommended Citation
Wassell, Jr., C. S. (2017). Social Security and saving: A time-series econometrics pedagogical example (with R code). The Journal of Economic Education, 49(1), 103–114. https://doi.org/10.1080/00220485.2017.1397575
Journal
The Journal of Economic Education
Rights
© 2018 Taylor & Francis
Comments
This article was originally published in The Journal of Economic Education. The full-text article from the publisher can be found here.
Due to copyright restrictions, this article is not available for free download from ScholarWorks @ CWU.