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Public Pensions and Growth

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  • Berthold U. Wigger

Abstract

This paper studies the short- and long-run effects of pay-as-you-go financed public pensions on productivity growth and discusses the possibility of a Pareto-improving reform. It shows that a reduction of those intergenerational transfers that are inherent in the leads to a permanent increase in productivity growth, a Pareto-improvement does not result. Yet, there is scope for a Pareto-improving public pension reform. Such a reform implies distributing public pension revenues in the form of savings subsidies rather that as lump-sum pension benefits.

Suggested Citation

  • Berthold U. Wigger, 1999. "Public Pensions and Growth," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 56(2), pages 241-241, June.
  • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(199906)56:2_241:ppag_2.0.tx_2-q
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    References listed on IDEAS

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