Unfunded pensions and endogenous labor supply
AbstractAbstract. A classic result in dynamic public economics, dating back to Aaron (1966) and Samuelson (1975), states that there is no welfare rationale for PAYG pensions in a dynamically-efficient neoclassical economy with exogenous labor supply. This paper argues that this result, under the fairly-mild restriction that the old be no less risk-averse than the young, extends to a neoclassical economy with endogenous labor supply.
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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2009-16.
Date of creation: 08 Dec 2009
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pay-as-you-go; social security; endogenous labor supply; dynamic efficiency;
Other versions of this item:
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-12-19 (Economics of Ageing)
- NEP-ALL-2009-12-19 (All new papers)
- NEP-DGE-2009-12-19 (Dynamic General Equilibrium)
- NEP-MAC-2009-12-19 (Macroeconomics)
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