Partially Funded Pension, Fertility and Endogenous Growth

Yang, Zaigui (2007): Partially Funded Pension, Fertility and Endogenous Growth. Published in: Insurance and Risk Management , Vol. 75, No. 1-2 (April 2007): pp. 1-12.

Abstract

Within a framework of an overlapping generations endogenous growth model, this paper examines the effects of China’s partially funded public pension on the fertility, the economic growth and the family old-age security. Chinese are assumed to satisfy for both having children and getting old-age material support from children. It is shown that raising the firm contribution rate reduces the rates of fertility and intergenerational transfer, and increases the economic growth rate. The individual contribution has no effect on the above rates. This paper also finds the proper firm contribution rate interval to promote economic growth, control population rationally and maintain some family old-age security.

• Item Type: MPRA Paper
• Language: English
• Keywords: Partially Funded Public Pension; Endogenous Growth; Fertility Rate; Family Old-Age Security
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions

References

Abel, A., (1987) “Operative Gift and Bequest Motives”. American Economic Review 77: 1037-1047.

Cigno, A., (1993) “Intergenerational Transfers without Altruism, Family, Market and State”. European Journal of Political Economy 9: 505-518.

Feldstein, M., (1999) “Social Security Pension Reform in China”. China Economic Review 10: 99-107.

Groezen, Bv., T. Leers, L. Meijdam, (2003) “Public Pension and Endogenous Fertility: Pensions and Child Allowances as Siamese Twins”. Journal of Public Economics 87: 233-251.

Nishimura, K., J. Zhang, (1992) “Pay-As-You-Go Public Pensions with Endogenous Fertility”. Journal of Public Economics 48: 239-258.

Raut, LK., (1992) “Capital Accumulation, Income Distribution and Endogenous Fertility in an Overlapping Generations Equilibrium Model”. Journal of Development Economics 34: 123-150.

Romer, PM., (1986) “Increasing Returns 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.

Wang, Y., D. Xu, Z. Wang and F. Zhai, (2004) “Options and Impact of China’s Pension Reform: a Computable General Equilibrium Analysis”, Journal of Comparative Economics 32, pp.105–127.

Wigger, BU., (1999) “Pay-As-You-Go Public Pensions in a Model of Endogenous Growth and Fertility”. Journal of Population Economics 12: 625-640.

World Bank (1997) “Old Age Security: Pension Reform in China”. China 2020 series, Washington, DC.

Zhang, J., K. Nishimura (1993) “The Old-Age Security Hypothesis Revisited”. Journal of Development Economics 41: 191-202.

Zhang, J., J. Zhang, (1995) “The Effects of Social Security on Population and Output Growth”. Southern Economic Journal 62: 440-450.

Zhang, J., J. Zhang, (1998) “Social Security, Intergenerational Transfers, and Endogenous Growth”. The Canadian Journal of Economics 31: 1225-1241.

Zhang, J., (1995) “Does Unfounded Social Security also Depress Output Growth?” Economics Letters 49: 307-312.

Zhang, J., J. Zhang, R. Lee, (2001) “Mortality Decline and Long-Run Economic Growth”. Journal of Public Economics 80: 485-507.

Zhang, J., J. Zhang, (2003) “Long-Run Effects of Unfunded Social Security with Earnings-Dependent Benefits”. Journal of Economic Dynamics & Control 28: 617-641.