How a Pay-As-You-Go Pension System Can Lead To a Pareto Improvement in an OLG Model with Endogenous Fertility
Mostly, all developed countries have the problem that the total fertility rate is below its sustainable level. Therefore, all these countries face economic problems caused by a demographic change. In this paper, we show that given certain conditions a pay-as-you-go pension system where the pension depends only on the number of own children leads to a Pareto improvement and to an increase of the total fertility rate. To show this we use an Overlapping Generation model with endogenous fertility in a small open economy.
Volume (Year): 3 (2013)
Issue (Month): 1 (June)
|Contact details of provider:|| |
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.:
- Oded Galor & David N. Weil, 1993.
"The Gender Gap, Fertility, and Growth,"
NBER Working Papers
4550, National Bureau of Economic Research, Inc.
- van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February.
- Robert Fenge & Volker Meier, 2005.
"Pensions and fertility incentives,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 38(1), pages 28-48, February.
- Berthold U. Wigger, 1999. "Pay-as-you-go financed public pensions in a model of endogenous growth and fertility," Journal of Population Economics, Springer, vol. 12(4), pages 625-640.
- Homburg, Stefan, 1990.
"The Efficiency of Unfunded Pension Schemes,"
EconStor Open Access Articles,
ZBW - German National Library of Economics, pages 640-647.
- Martin Kolmar, 1997. "Intergenerational redistribution in a small open economy with endogenous fertility," Journal of Population Economics, Springer, vol. 10(3), pages 335-356.
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Luca Gori & Luciano Fanti, 2008. "Fertility-related pensions and fertility disincentives," Economics Bulletin, AccessEcon, vol. 10(8), pages 1-7.
When requesting a correction, please mention this item's handle: RePEc:wei:journl:v:3:y:2013:i:1:p:61-69. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mihai Mutascu)
If references are entirely missing, you can add them using this form.