As part of his privatization plan to reform social security, Management Theories

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As part of his privatization plan to reform social security

Question: 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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Management Theories: As part of his privatization plan to reform social security

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Management Theories: As part of his privatization plan to reform social security

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