Yang, Zaigui (2005): Pay-As-You-Go Public Pension Systems: Two-Sided Altruism and Endogenous Growth. Published in: Asia-Pacific Journal of Risk and Insurance , Vol. 1, No. 1 (June 2005): pp. 33-44.
Download (167kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Pay-As-You-Go Public Pension Systems: Two-Sided Altruism and Endogenous Growth|
|Keywords:||Public Pension; Two-Sided Altruism; Endogenous Growth|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions|
|Depositing User:||Zaigui Yang|
|Date Deposited:||20. Nov 2009 19:20|
|Last Modified:||11. Feb 2013 19:10|
Abel, Andrew B. and Mark Warshawsky, (1988), Specification of the joy of giving: Insights from Altruism, Review of Economics and Statistics, 70, 145-149.
Barro, Robert J. and Xavier Sala-I-Martin, (1995), Economic Growth, McGraw-Hill, New York.
Blanchard, Olivier J. and Fischer, Stanley, (1989), Lectures on Macroeconomics, MIT Press, Cambridge.
Groezen, Bas van, Theo Leers and Lex Meijdam, (2003), Public pension and endogenous fertility: pensions and child allowances as siamese twins, Journal of Public Economics, 87, 233-251.
Kotlikoff, Laurence J. and Laurence H. Summers, (1981), The Role of Intergenerational Transfers in Aggregate Transfers, Journal of Political Economy, 90, 706-732.
Nishimura, Kazuo and Junsen Zhang, (1992), Pay-as-you-go Public Pension with Endogenous Fertility, Journal of Public Economics, 48, 239-58.
Nishimura, Kazuo and Junsen Zhang, (1995), Sustainable Plans of Public Pension with Endogenous Fertility, Oxford Economic Papers, 47, 182-194.
Romer, Paul M., (1986), Increasing Return and Long-run Growth, Journal of Political Economy, 94, 1002-1037.
Saint-Paul, G., (1992), Fiscal Policy in an Endogenous Growth Model, Quarterly Journal of Economics, 106, 1243-1259.
Sheshinski, Eytan and Weiss, Yoram, (1981), Uncertainty and optimal public pension systems, Quarterly Journal of Economics, 96, 189-206.
Veall, Michael R., (1986), Public Pensions as Optimal Social Contracts, Journal of Public Economics, 31, 237-251.
Wigger, Berthold U., (1999a), Pay-as-you-go public pensions in a model of endogenous output growth and fertility, Journal of Population Economics, 12, 625-640.
Wigger, Berthold U., (1999b), Public Pensions and Output Growth, Finanzarchiv, 56, S. 241-263.
Zhang, Junsen and Junxi Zhang, (1995), The Effect of Social Security on Population and Output Growth. Southern Economic Journal, 62: 440-450.
Zhang, Junsen and Junxi Zhang, (1998), Social Security, Intergenerational Transfers, and Endogenous Growth, The Canadian Journal of Economics, 31, 1225-1241.
Zhang, Junsen and Junxi Zhang, (2001), Bequest Motives, Social Security, and Economic Growth, Economic Inquiry, 39, 453-466.