Fanti, Luciano and Gori, Luca (2010): Fertility-related pensions and cyclical instability.
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We show that the introduction of unfunded public pensions in a Cobb-Douglas economy with overlapping generations and endogenous fertility may cause complex economic cycles when individuals are short-sighted. In particular, the risk of cyclical instability increases with both the individual degree of thriftiness and the relative weight of individual fertility in the pension system. Our results provide a possible explanation of the occurrence of persistent cycles in an overlapping generations context and represent a policy warning about the dramatic destabilising effects of a fertility-related pension reform.
|Item Type:||MPRA Paper|
|Original Title:||Fertility-related pensions and cyclical instability|
|English Title:||Fertility-related pensions and cyclical instability|
|Keywords:||Endogenous fertility; Fertility-related pensions; Myopic foresight; OLG model|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions
J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
J - Labor and Demographic Economics > J1 - Demographic Economics > J18 - Public Policy
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:||26. Jan 2010 01:20|
|Last Modified:||23. Feb 2013 14:05|
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