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Pay-As-You-Go Public Pension Systems: Two-Sided Altruism and Endogenous Growth


  • Yang, Zaigui


Within the framework of an overlapping generations model with two-sided altruism and endogenous growth, this paper calculates the rates of fertility, output growth, child-rearing cost, saving, consumption, net intertemporal transfer, bequest and gift, and compares the equilibrium solutions under different public pension systems. It proves that the fully-fertilitylinked public pension system (FFLPPS) is equivalent to the system without public pension (WPPS), and the partly-fertility-linked public pension system (PFLPPS) is equivalent to the conventional public pension system (CPPS). The CPPS is beneficial to developing countries in promoting economic growth and reducing population. It is necessary for developed countries to weigh gains and losses carefully if they hope to transform their CPPS (or PFLPPS) to the FFLPPS.

Suggested Citation

  • Yang, Zaigui, 2005. "Pay-As-You-Go Public Pension Systems: Two-Sided Altruism and Endogenous Growth," MPRA Paper 18623, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:18623

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    References listed on IDEAS

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    14. Berthold U. Wigger, 1999. "Pay-as-you-go financed public pensions in a model of endogenous growth and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(4), pages 625-640.
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    Cited by:

    1. Stauvermann, Peter J. & Ky, Sereyvath & Nam, Gi-Yu, 2013. "The Costs of Increasing the Fertility Rate in an Endogenous Growth Model," MPRA Paper 46381, University Library of Munich, Germany.

    More about this item


    Public Pension; Two-Sided Altruism; Endogenous Growth;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions


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