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Unfunded Public Pension System in the Presence of Perfect Household Mobility

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Author Info

  • Ulrich Hange

Abstract

In this paper we investigate the effects of unfunded public pension schemes in a small open economy with land where young households are perfectly mobile. The burden of the intergenerational transfer system is entirely borne by members of the old generation. The incidence, however, varies with the policy pursued by the government. If it levies a constant contribution, the transfer recipients as well as the landowners carry the burden. In the case of a constant pension payment the whole loss is shifted to the owners of the immobile factor land. Furthermore, this policy may be inapplicable in the long run.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 57 (2000)
Issue (Month): 1 (September)
Pages: 77-

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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200009)57:1_77:uppsit_2.0.tx_2-g

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References

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  1. Homburg, Stefan, 1988. "Theorie der Alterssicherung," EconStor Books, ZBW - German National Library of Economics, number 92902, March.
  2. Stefan Homburg & Wolfram Richter, 1993. "Harmonizing public debt and public pension schemes in the European community," Journal of Economics, Springer, vol. 58(1), pages 51-63, December.
  3. Sinn, Hans-Werner, 1994. "How much Europe? Subsidiarity, centralization and fiscal competition," Munich Reprints in Economics 19838, University of Munich, Department of Economics.
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Cited by:
  1. Tim Krieger, 2001. "Intergenerational Redistribution and Labor Mobility: A Survey," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(3), pages 339-, July.

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