The Demographic Challenge of the Interconnected Education and Pension System in the Czech Republic
AbstractIn their recent paper, Boldrin and Montes (2005) analyzed the “return on human capital investment” theory and showed that if borrowing for education is not possible, then a combined public education and pension system that uses lump-sum revenue from taxes and income transfers can replicate the first-best decentralized allocation achieved in an economy without taxes, where borrowing for human-capital accumulation (education) is permitted. Taking into account that such borrowing is either absent or inefficient in many countries, a combined public education/public pension scheme might prove to be welfare enhancing. Guided by this theoretical framework, the authors calibrate the parameters of an interconnected pension and education system for the Czech Republic under different demographic scenarios and fiscal rules. They also model the impact of increases in the retirement age and of a hypothetical unbalancing of pensions or educational transfers.
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Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.
Volume (Year): 56 (2006)
Issue (Month): 11-12 (November)
public education; demographic development; pay-as-you-go pensions;
Other versions of this item:
- Sergey Slobodyan & Viatcheslav Vinogradov, 2007. "The Demographic Challenge of the Interconnected Education and Pension System in the Czech Republic," CERGE-EI Working Papers wp326, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
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.:
- Michele Boldrin & Ana Montes, 2005.
"The Intergenerational State Education and Pensions,"
Review of Economic Studies,
Oxford University Press, vol. 72(3), pages 651-664.
- Michele Boldrin & Ana Montes, 2004. "The intergenerational state: education and pensions," Staff Report 336, Federal Reserve Bank of Minneapolis.
- Boldrin, Michele & Montes, Ana, 2002. "The Intergenerational State: Education and Pensions," CEPR Discussion Papers 3275, C.E.P.R. Discussion Papers.
- Saint-Paul, Gilles & Verdier, Thierry, 1993.
"Education, democracy and growth,"
Journal of Development Economics,
Elsevier, vol. 42(2), pages 399-407, December.
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