Fanti, Luciano and Gori, Luca (2010): PAYG pensions and economic cycles.
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This article analyses the dynamics of an overlapping generations economy (Diamond, 1965) with pay-as-you-go financed public pensions and myopic expectations. It is shown that large PAYG pensions triggers economic fluctuations depending on the mutual relationship between technology and preference parameters. Our findings constitute a policy warning about the size of social security and provide another explanation of the occurrence of persistent cycles.
|Item Type:||MPRA Paper|
|Original Title:||PAYG pensions and economic cycles|
|English Title:||PAYG pensions and economic cycles|
|Keywords:||Myopic foresight; PAYG pensions; Stability; OLG model|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J26 - Retirement; Retirement Policies
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium
|Depositing User:||Luca Gori|
|Date Deposited:||15. Jan 2010 14:20|
|Last Modified:||23. Feb 2013 21:50|
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