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Fertility, Official Pension Age, and PAYG Pensions

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  • Chen, Hung-Ju

Abstract

This paper examines the effect of fertility and official pension age on long-run pay-as-you-go (PAYG) pensions based on an overlapping generations model. We find that increasing the fertility rate or official pension age does not necessarily raise pensions. When the output elasticity of capital is low, an increase in the fertility rate or official pension age may raise pensions, but such a change reduces pensions if the output elasticity of capital and the tax rate are high.

Suggested Citation

  • Chen, Hung-Ju, 2015. "Fertility, Official Pension Age, and PAYG Pensions," MPRA Paper 66429, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66429
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    File URL: https://mpra.ub.uni-muenchen.de/66429/1/MPRA_paper_66429.pdf
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    References listed on IDEAS

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    1. Luciano Fanti & Luca Gori, 2012. "Fertility and PAYG pensions in the overlapping generations model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 955-961, July.
    2. Michele Boldrin & Larry E. Jones, 2002. "Mortality, Fertility, and Saving in a Malthusian Economy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 775-814, October.
    3. Sala-i-Martin, Xavier X, 1996. "A Positive Theory of Social Security," Journal of Economic Growth, Springer, vol. 1(2), pages 277-304, June.
    4. Berthold U. Wigger, 1999. "Public Pensions and Growth," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 56(2), pages 241-241, June.
    5. Alessandro Cigno, 2007. "Low fertility in Europe: Is the pension system the victim or the culprit? Introduction by Alessandro Cigno," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(03), pages 37-42, October.
    6. Berthold U. Wigger, 1999. "Pay-as-you-go financed public pensions in a model of endogenous growth and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(4), pages 625-640.
    7. Zhang, Jie & Zhang, Junsen, 2003. "Long-run effects of unfunded social security with earnings-dependent benefits," Journal of Economic Dynamics and Control, Elsevier, vol. 28(3), pages 617-641, December.
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    Cited by:

    1. Chen, Hung-Ju, 2015. "Fertility and PAYG Pensions in an Overlapping Generations Model with Endogenous Retirement," MPRA Paper 68020, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fertility; Official pension age; OLG; PAYG pensions.;
    All these keywords.

    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
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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