Growth and Social Security: The Role of Human Capital
AbstractThis paper studies the growth and efficiency effects of pay-as-you-go financed social security when human capital is the engine of growth. Employing a variant of the Lucas (1988) model with overlapping generations, it is shown that a properly designed unfunded social security system leads to higher output growth than a fully funded one. Furthermore, the economy with unfunded social security is efficient while the other one is not. These results stand in sharp contrast to those that obtain in models where economic growth is driven by physical capital accumulation.
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Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 33.
Date of creation: 01 Jan 2000
Date of revision:
Publication status: Published in European Journal of Political Economy, 2000, vol. 16, pages 673-683
Endogenous Growth; Social Security; Human Capital;
Other versions of this item:
- Kemnitz, Alexander & Wigger, Berthold U., 2000. "Growth and social security: the role of human capital," European Journal of Political Economy, Elsevier, vol. 16(4), pages 673-683, November.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-11-05 (All new papers)
- NEP-LAB-2001-11-05 (Labour Economics)
- NEP-PBE-2001-11-05 (Public Economics)
- NEP-PUB-2001-11-05 (Public Finance)
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.:
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