Giving the ageing of the population how can countries afford pay-as-you-go social insurance pensions?
AbstractThe paper examines formation and sustainability of Pay-As-You-Go pension systems within the consequences of the ageing of population. Parametric reforms rather than institutional transformation of Pay-As-You-Go systems into funded pension schemes are advocated. Following the modern theories of family economics and contrary to the mainstream works on the issue, reciprocal causation between pension systems and ageing is stressed. The paper concludes that the World Bank’s first pillar adjustment for maintaining the Pay-As-You-Go schemes achieves its objectives only if it is focused on all elements of the Pay-As-You-Go system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 2869.
Date of creation: Mar 2007
Date of revision:
Pensions; Pay-As-You-Go; Ageing;
Find related papers by JEL classification:
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
- NEP-AGE-2007-04-28 (Economics of Ageing)
- NEP-ALL-2007-04-28 (All new papers)
- NEP-IAS-2007-04-28 (Insurance Economics)
- NEP-PBE-2007-04-28 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hans-Werner Sinn, 1998.
"The Pay-As-You-Go Pension System as a Fertility Insurance and Enforcement Device,"
NBER Working Papers
6610, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 1998. "The Pay-As You-Go Pension System as a Fertility Insurance and Enforcement Device," CEPR Discussion Papers 2023, C.E.P.R. Discussion Papers.
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Marco Pagano & Paolo Volpin, 2001.
"The Political Economy of Finance,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 17(4), pages 502-519.
- Marco Pagano & Paolo Volpin, 2001. "The Political Economy of Finance," CSEF Working Papers 76, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Pagano, Marco & Volpin, Paolo, 2002. "The Political Economy of Finance," CEPR Discussion Papers 3231, C.E.P.R. Discussion Papers.
- Cremer, Helmuth & Gahvari, Firouz & Pestieau, Pierre, 2004.
"Pensions with Endogenous and Stochastic Fertility,"
IDEI Working Papers
305, Institut d'Économie Industrielle (IDEI), Toulouse.
- Helmut Cremer & Firouz Gahvari & Pierre Pestieau, 2006. "Pensions with endogenous and stochastic fertility," Working Papers 22594, Institut National de la Recherche Agronomique, France.
- CREMER, Helmuth & PESTIEAU, Pierre & GAHVARI, Firouz, 2004. "Pensions with endogenous and stochastic fertility," CORE Discussion Papers 2004067, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- CREMER, Helmuth & GAHVARI, Firouz & PESTIEAU, Pierre, . "Pensions with endogenous and stochastic fertility," CORE Discussion Papers RP -1928, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fertig, Michael & Schmidt, Christoph M. & Schneider, Hilmar, 2006.
"Active labor market policy in Germany--Is there a successful policy strategy?,"
Regional Science and Urban Economics,
Elsevier, vol. 36(3), pages 399-430, May.
- Fertig, Michael & Schmidt, Christoph M. & Schneider, Hilmar, 2002. "Active Labor Market Policy in Germany – Is There a Successful Policy Strategy?," IZA Discussion Papers 576, Institute for the Study of Labor (IZA).
- repec:wop:bodewp:218 is not listed on IDEAS
- Galasso, Vincenzo & Profeta, Paola, 2007. "How does ageing affect the welfare state?," European Journal of Political Economy, Elsevier, vol. 23(2), pages 554-563, June.
- Bettendorf, Leon J.H. & Heijdra, Ben J., 2006.
"Population ageing and pension reform in a small open economy with non-traded goods,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 30(12), pages 2389-2424, December.
- Leon Bettendorf & Ben Heijdra, 2005. "Population Ageing and Pension Reform in a Small Open Economy with Non-Traded Goods," Tinbergen Institute Discussion Papers 05-021/2, Tinbergen Institute.
- Axel Boersch-Supan & Christina B. Wilke, 2004. "The German Public Pension System: How it Was, How it Will Be," NBER Working Papers 10525, National Bureau of Economic Research, Inc.
- MARCHAND, Maurice & PESTIEAU, Pierre, .
"Public pensions: choices for the future,"
CORE Discussion Papers RP
-938, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Isaac Ehrlich & Jinyoung Kim, 2007. "Social Security and Demographic Trends: Theory and Evidence from the International Experience," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(1), pages 55-77, January.
- Sinn, Hans-Werner, 2004.
"The pay-as-you-go pension system as fertility insurance and an enforcement device,"
Munich Reprints in Economics
19606, University of Munich, Department of Economics.
- Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1335-1357, July.
- Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Munich Reprints in Economics 938, University of Munich, Department of Economics.
- Nicholas Barr & Peter Diamond, 2006.
"The Economics of Pensions,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 22(1), pages 15-39, Spring.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Rosati, Furio Camillo, 1996. "Social security in a non-altruistic model with uncertainty and endogenous fertility," Journal of Public Economics, Elsevier, vol. 60(2), pages 283-294, May.
- Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
- Philipp C. Rother & Marco Catenaro & Gerhard Schwab, 2004. "Aging and Pensions in the Euro Area," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(4), pages 593-, December.
- Sheetal K. Chand & Albert Jaeger, 1996. "Aging Populations and Public Pension Schemes," IMF Occasional Papers 147, International Monetary Fund.
- Giorgio Bellettini & Carlotta Berti Ceroni, 1995.
"Is Social Security Really Bad For Growth?,"
218, Dipartimento Scienze Economiche, Universita' di Bologna.
- Saint-Paul, G., 1991.
"Fiscal Policy In An Endogenous Growth Model,"
DELTA Working Papers
91-04, DELTA (Ecole normale supérieure).
- Thai-Thanh Dang & Pablo Antolín & Howard Oxley, 2001. "Fiscal Implications of Ageing: Projections of Age-Related Spending," OECD Economics Department Working Papers 305, OECD Publishing.
- Sergi Jiménez-Martín & Michele Boldrin, 2002.
"Evaluating Spanish pension expenditure under alternativa reform scenario,"
Economics Working Papers
652, Department of Economics and Business, Universitat Pompeu Fabra.
- Michele Boldrin & Sergi Jimenez-Martin, 2007. "Evaluating Spanish Pension Expenditure under Alternative Reform Scenarios," NBER Chapters, in: Social Security Programs and Retirement around the World: Fiscal Implications of Reform, pages 351-412 National Bureau of Economic Research, Inc.
- repec:wbk:wbpubs:12426 is not listed on IDEAS
- Leers, Theo & Meijdam, Lex & Verbon, Harrie A. A., 2004. "Ageing, migration and endogenous public pensions," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 131-159, January.
- David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
- Pemberton, James, 2000. "National and international privatisation of pensions," European Economic Review, Elsevier, vol. 44(10), pages 1873-1896, December.
- Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-98, June.
- Alfredo Cuevas & G. A. Mackenzie & Philip R. Gerson, 1997. "Pension Regimes and Saving," IMF Occasional Papers 153, International Monetary Fund.
- Sayan, Serdar & Kiraci, Arzdar, 2001. "Parametric pension reform with higher retirement ages: A computational investigation of alternatives for a pay-as-you-go-based pension system," Journal of Economic Dynamics and Control, Elsevier, vol. 25(6-7), pages 951-966, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.