Prove Proposition 9.8.
Proposition 9.8
Consider the above-described OLG economy and suppose that the decentralized competitive equilibrium is dynamically inefficient. Then there exists a feasible sequence of unfunded social security payments
![2360_2ccbc78b-e9cb-40f4-98a9-ca8eb5e3cf5e.png](https://secure.tutorsglobe.com/CMSImages/2360_2ccbc78b-e9cb-40f4-98a9-ca8eb5e3cf5e.png)
that leads to a competitive equilibrium starting from any date t that Pareto dominates the competitive equilibrium without social security.