Optimal population growth and social security reform with heterogeneous agents
AbstractIn this paper we propose a pension policy that would isolate the social security system from any financial crisis resulting from changes in population structure. This policy consists of linking social security benefits to the fertility behaviour of the individual. We present a theoretical analysis to show that this policy restores the optimality of the capital-labour ratio and the population growth rate in an overlapping-generations model with endogenous fertility. We extend this analysis to the case of heterogeneous agents with respect to their preferences towards children.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2001027.
Date of creation: 00 May 2001
Date of revision:
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More information through EDIRC
pay-as-you-go social security system; overlapping-generations model; endogenous fertility; heterogeneous agents; optimal population growth;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
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