Pay-As-You-Go Public Pension Systems: Two-Sided Altruism and Endogenous Growth
AbstractWithin the framework of an overlapping generations model with two-sided altruism and endogenous growth, this paper calculates the rates of fertility, output growth, child-rearing cost, saving, consumption, net intertemporal transfer, bequest and gift, and compares the equilibrium solutions under different public pension systems. It proves that the fully-fertilitylinked public pension system (FFLPPS) is equivalent to the system without public pension (WPPS), and the partly-fertility-linked public pension system (PFLPPS) is equivalent to the conventional public pension system (CPPS). The CPPS is beneficial to developing countries in promoting economic growth and reducing population. It is necessary for developed countries to weigh gains and losses carefully if they hope to transform their CPPS (or PFLPPS) to the FFLPPS.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18623.
Date of creation: Jun 2005
Date of revision:
Publication status: Published in Asia-Pacific Journal of Risk and Insurance 1.1(2005): pp. 33-44
Public Pension; Two-Sided Altruism; Endogenous Growth;
Other versions of this item:
- Yang Zaigui, 2005. "Pay-As-You-Go Public Pension Systems: Two-sided Altruism and Endogenous Growth," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 1(1), pages 1-13, June.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
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