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Intergenerational Transfers and Growth

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  • Giancarlo Marini

    (Università di Roma, Italy)

  • Pasquale Scaramozzino

    (Centre for Financial and Management Studies, SOAS University of London, UK)

Abstract

This paper shows that, when the supply side dynamics is modelled along the lines suggested by the endogenous growth literature, it is possible that properly designed unfunded schemes would promote growth. The reduction in savings when an intergenerational transfer programme is introduced has a negative impact on capital accumulation and output. However, in the long run the saving rate will be greater than in the absence of social security, and this could lead to increased well-being for future generations. Social security can thus positively contribute to long-run capital accumulation.

Suggested Citation

  • Giancarlo Marini & Pasquale Scaramozzino, 1997. "Intergenerational Transfers and Growth," Working Papers 74, Department of Economics, SOAS University of London, UK.
    • Handle: RePEc:soa:wpaper:74
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    Cited by:

    1. Giammarioli, Nicola & Annicchiarico, Barbara, 2004. "Fiscal rules and sustainability of public finances in an endogenous growth model," Working Paper Series 381, European Central Bank.

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