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Pay-as-you-go financed public pensions in a model of endogenous growth and fertility

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Author Info

  • Berthold U. Wigger

    ()
    (Department of Economics, University of Mannheim, A5, D-68131 Mannheim, Germany)

Abstract

Employing an overlapping generations endogenous growth model in which parents derive utility from having children and, additionally, expect children to support them in old age, this paper explores the interrelation between growth, fertility, and the size of pay-as-you-go financed public pensions. It is shown that small sized public pensions stimulate per capita income growth, but further increases in public pensions eventually reduce it. Fertility, on the other hand, falls by an increase in public pensions if they are either small or large. Medium sized public pensions, however, may stimulate fertility.

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 12 (1999)
Issue (Month): 4 ()
Pages: 625-640

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Handle: RePEc:spr:jopoec:v:12:y:1999:i:4:p:625-640

Note: Received: 9 September 1997 / Accepted: 10 April 1998
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Related research

Keywords: Public pensions · endogenous growth · fertility;

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