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To cap or not to cap on public pension

Author

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  • Insook Lee
  • Timothy Lu
  • Qian Chen

Abstract

Many countries actually put a cap on their public pension so that public pension contribution and benefit no longer increase above the cap, while others do not. Should the government remove the cap on the public pension? Using an overlapping-generations model, this article finds that putting a cap on the public pension is more socially desirable than removing it.

Suggested Citation

  • Insook Lee & Timothy Lu & Qian Chen, 2022. "To cap or not to cap on public pension," Applied Economics Letters, Taylor & Francis Journals, vol. 29(9), pages 812-816, May.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:9:p:812-816
    DOI: 10.1080/13504851.2021.1888860
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