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Social Security as Markov Equilibrium in OLG Models: A Note


  • Martín Gonzalez Eiras

    () (Department of Economics, Universidad de San Andres & CONICET)


I refine and extend the Markov perfect equilibrium of the social security policy game in Forni (2005) for the special case of logarithmic utility. Under the restriction that the policy function be continuous, instead of differentiable, the equilibrium is globally well defined and its dynamics always stable.

Suggested Citation

  • Martín Gonzalez Eiras, 2010. "Social Security as Markov Equilibrium in OLG Models: A Note," Working Papers 105, Universidad de San Andres, Departamento de Economia, revised Sep 2010.
  • Handle: RePEc:sad:wpaper:105

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    References listed on IDEAS

    1. Gonzalez-Eiras, Marti­n & Niepelt, Dirk, 2008. "The future of social security," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 197-218, March.
    2. Kaiji Chen & Zheng Song, 2014. "Markovian Social Security in Unequal Societies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(4), pages 982-1011, October.
    3. Mateos-Planas, Xavier, 2008. "A quantitative theory of social security without commitment," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 652-671, April.
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    Cited by:

    1. Tetsuo Ono, 2014. "Intergenerational Politics, Government Debt, and Economic Growth," Discussion Papers in Economics and Business 14-23-Rev.2, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Jun 2015.
    2. Dirk Niepelt & Martin Gonzalez-Eiras, 2008. "Economic and Politico-Economic Equivalence of Fiscal Policies," 2008 Meeting Papers 631, Society for Economic Dynamics.
    3. Ryo Arawatari & Tetsuo Ono, 2015. "A Political Economy Model of Earnings Mobility and Redistribution Policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(3), pages 346-382, June.
    4. Martín Gonzalez-Eiras & Dirk Niepelt, 2012. "Economic and Politico-Economic Equivalence," Working Papers 12.02, Swiss National Bank, Study Center Gerzensee.
    5. Martin Gonzalez-Eiras & Dirk Niepelt, 2015. "Politico-Economic Equivalence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 843-862, October.

    More about this item


    social security; overlapping generations models; Markov equilibria;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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