Feldstein, Martin2009-04-031987Feldstein, Martin. 1987. Should social security benefits be means tested? Journal of Political Economy 95(3): 468-484.0022-3808http://nrs.harvard.edu/urn-3:HUL.InstRepos:2770498Social-security retirement benefits distort the saving decisions of workers who are rational enough to save for their future. Since the implicit rate of return in an unfunded social-security program is less than the marginal product of capital, the resulting decline in saving causes a welfare loss. The present paper examines the conditions under which the welfare loss can be reduced by replacing the current universal social-security program with a means-tested program that pays benefits only to those individuals with little or no other retirement income or assets.en-US10.1086/261467