Increasing PAYG pension benefits and reducing contribution rates
We analyse how a reduced contribution rate affects the balanced pay-as-you-go pension budget in the basic overlapping generations model of neoclassical growth (Diamond, P., 1965. National debt in a neoclassical growth model. American Economic Review 55 (5), 1126-1150). It is shown that PAYG pensions can be increased by reducing the payroll tax paid by the young contributors.
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- Pecchenino, Rowena A. & Pollard, Patricia S., 2002.
"Dependent children and aged parents: funding education and social security in an aging economy,"
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- Rowena A. Pecchenino & Patricia S. Pollard, 2000. "Dependent children and aged parents: funding education and social security in an aging economy," Working Papers 1995-001, Federal Reserve Bank of St. Louis.
- Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, vol. 80(3), pages 485-507, June.
- Rowena A. Pecchenino & Patricia S. Pollard, 2005.
"Aging, Myopia, and the Pay-As-You-Go Public Pension Systems of the G7: A Bright Future?,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 7(3), pages 449-470, 08.
- Rowena A. Pecchenino & Patricia S. Pollard, 2003. "Aging, myopia and the pay-as-you-go public pension systems of the G7: a bright future?," Working Papers 2000-015, Federal Reserve Bank of St. Louis.
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