Modeling Behavioral Responses to Changes in Social Security: A Life-Cycle Framework

The life cycle model can be used to provide detailed predictions of the behavioral responses to wide range of hypothetical changes in Social Security policy. I provide a concrete illustration of how this is done by using a preliminary calibrated version of the life cycle model to predict the behavioral responses of a change in the Social Security Disability Insurance (SSDI) program known internally within the Social Security Administration as the 1 for 2 benefit offset proposal .