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Unfunded Public Pension System in the Presence of Perfect Household Mobility

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  • 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.

Suggested Citation

  • Ulrich Hange, 2000. "Unfunded Public Pension System in the Presence of Perfect Household Mobility," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(1), pages 77-88, September.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200009)57:1_77:uppsit_2.0.tx_2-g
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    Cited by:

    1. Tim Krieger, 2002. "Intergenerational Redistribution and Labor Mobility: A Survey," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(3), pages 339-361, July.
    2. Zoutieding, Tieding, 2018. "生育率波动与土地流失对城郊家庭养老的侵蚀性影响 [The Erosion Effect of the Fertility Fluctuation and Soil Erosion on Elderly Supporting of Suburban Families]," MPRA Paper 101626, University Library of Munich, Germany, revised 06 Dec 2018.
    3. Igor Fedotenkov & Lex Meijdam, 2014. "Pension reform with migration and mobile capital: is a Pareto improvement possible?," International Economics and Economic Policy, Springer, vol. 11(3), pages 431-450, September.

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    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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