Optimal Intergenerational Redistribution in a Two-Country Model with Endogenous Fertility
AbstractWe analyze a model with two countries that are linked by an integrated capital market. Fertility, and thus population growth, is endogenously determined by households. Our analysis proceeds in three steps: First, we characterize an optimal intertemporal and interregional allocation in a model with endogenous fertility and two countries. Second, we look for an institution supporting the optimal allocation. It turns out that in general, a decentralized equilibrium is inefficient. National public-pension systems with benefits that are related to the number of children implements the optimal allocation. This provides a justification for government interventions beyond its role as a "night-watchman." Third, we analyze whether national governments have the right incentives to implement the optimal system. It turns out that every national government has an incentive to deviate from the optimal structure and to shift part of the burden to the other country. Policy implications for the institutional arrangements within the European Union are discussed. Copyright 2001 by Kluwer Academic Publishers
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 106 (2001)
Issue (Month): 1-2 (January)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100332
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Robert Fenge & Volker Meier, 2009. "Are family allowances and fertility-related pensions perfect substitutes?," International Tax and Public Finance, Springer, vol. 16(2), pages 137-163, April.
- Volker Meier & Matthias Wrede, 2005.
"Pension, Fertility, and Education,"
CESifo Working Paper Series
1521, CESifo Group Munich.
- Martin Werding, 2006. "Kinderrente und Vorsorgepflicht - der ifo-Vorschlag zur Lösung der demographischen Krise des Rentensystems," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 59(07), pages 44-53, 04.
- G. ABIO & Géraldine MAHIEU & C. Patxot, 2002.
"On the Optimality of PAYG Pension Systems in an Endogenous Fertility Setting,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2002006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Ab O, G. & Mahieu, G. & Patxot, C., 2004. "On the optimality of PAYG pension systems in an endogenous fertility setting," Journal of Pension Economics and Finance, Cambridge University Press, vol. 3(01), pages 35-62, March.
- G. Abío & Geraldine Mahieu & Cio Patxot, 2003. "On the Optimality of PAYG Pension Systems in an Endogenous Fertility Setting," CESifo Working Paper Series 1050, CESifo Group Munich.
- Volker Meier & Robert Fenge, 2004.
"Are Family Allowances And Fertility-Related Pensions Siamese Twins?,"
Royal Economic Society Annual Conference 2004
125, Royal Economic Society.
- Robert Fenge & Volker Meier, 2004. "Are Family Allowances and Fertility-related pensions Siamese Twins?," CESifo Working Paper Series 1157, CESifo Group Munich.
- Concepció Patxot & Elisenda Renteria & Miguel Sánchez Romero & Guadalupe Souto, 2012.
"Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee Arrows,"
MPIDR Working Papers
WP-2012-015, Max Planck Institute for Demographic Research, Rostock, Germany.
- Concepció Patxot & Elisenda Rentería & Miguel Romero & Guadalupe Souto, 2012. "Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee arrows," International Tax and Public Finance, Springer, vol. 19(3), pages 442-461, June.
- Robert Fenge & Volker Meier, 2003.
"Pensions and Fertility Incentives,"
CESifo Working Paper Series
879, CESifo Group Munich.
- Kolmar, Martin, 2007. "Beveridge versus Bismarck public-pension systems in integrated markets," Regional Science and Urban Economics, Elsevier, vol. 37(6), pages 649-669, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.