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Equilibrium dynamics with different types of pay-as-you-go pension schemes

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Author Info
Andreas Wagener () (University of Vienna)

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Abstract

We analyse the steady-state equilibrium dynamics of an OLG economy with a pay-as-you-go (PAYG) pension scheme that relates old-age pensions to previous earnings. Contrary to an economy where PAYG pensions depend on the earnings of those currently working, such an economy may experience complex equilibrium dynamics with endogenous cycles and bifurcations.

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File URL: http://www.economicsbulletin.com/2003/volume8/EB-03H50001A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 8 (2003)
Issue (Month): 6 ()
Pages: 1-12
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Handle: RePEc:ebl:ecbull:v:8:y:2003:i:6:p:1-12

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Related research
Keywords: bifurcations; dynamics; pay-as-you-go pensions; stability; steady state;

Find related papers by JEL classification:
H5 - Public Economics - - National Government Expenditures and Related Policies

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Michel, Philippe & de la Croix, David, 2000. "Myopic and perfect foresight in the OLG model," Economics Letters, Elsevier, vol. 67(1), pages 53-60, April. [Downloadable!] (restricted)
    Other versions:
  2. Koskela, Erkki & Ollikainen, Markku & Puhakka, Mikko, 2000. "Saddles, Indeterminacy and Bifurcations in an Overlapping Generations Economy with a Renewable Resource," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Reichlin, Pietro, 1986. "Equilibrium cycles in an overlapping generations economy with production," Journal of Economic Theory, Elsevier, vol. 40(1), pages 89-102, October. [Downloadable!] (restricted)
  4. Coimbra, Rui & Lloyd-Braga, Teresa & Modesto, Leonor, 2000. "Unions, Increasing Returns and Endogenous Fluctuations," IZA Discussion Papers 229, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Aloi, Marta & Dixon, Huw D. & Lloyd-Braga, Teresa, 2000. "Endogenous fluctuations in an open economy with increasing returns to scale," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 97-125, January. [Downloadable!] (restricted)
    Other versions:
  6. Erkki Koskela & Markku Ollikainen & Mikko Puhakka, 2000. "Saddles, Indeterminacy and Bifurcations in an Overlapping Generations Economy with a Renewable Resource," Econometric Society World Congress 2000 Contributed Papers 1810, Econometric Society. [Downloadable!]
  7. Grandmont, Jean-Michel & Pintus, Patrick & de Vilder, Robin, 1998. "Capital-Labor Substitution and Competitive Nonlinear Endogenous Business Cycles," Journal of Economic Theory, Elsevier, vol. 80(1), pages 14-59, May. [Downloadable!] (restricted)
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  8. Farmer, Roger E. A., 1986. "Deficits and cycles," Journal of Economic Theory, Elsevier, vol. 40(1), pages 77-88, October. [Downloadable!] (restricted)
  9. Koskela, E. & Ollikainen, M. & Puhakka, M., 2000. "Saddles, Indeterminacy and Bifurcations in an Overlapping Generations Economy with a Renewable Resource," University of Helsinki, Department of Economics 476, Department of Economics.
  10. Burbidge, John B., 1983. "Social security and savings plans in overlapping-generations models," Journal of Public Economics, Elsevier, vol. 21(1), pages 79-92, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lucas Bretschger & Karen Pittel, 2005. "Innovative Investments, Natural Resources and Intergenerational Fairness: Are Pension Funds Good for Sustainable Development?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(III), pages 355-376, September. [Downloadable!]
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