Skip to main content
×
×
Home

Pension policies in a model with endogenous fertility

  • GIAM PIETRO CIPRIANI (a1) and FRANCESCO PASCUCCI (a2)
Abstract

We set up an overlapping-generations model with endogenous fertility to study pensions policies in an ageing economy. We show that an increasing life expectancy may not be detrimental for the economy or the pension system itself. On the other hand, conventional policy measures, such as increasing the retirement age or changing the social security contribution rate could have undesired general equilibrium effects. In particular, both policies decrease capital per worker and might have negative effects on the fertility rate, thus exacerbating population ageing.

Copyright
References
Hide All
Aísa, R., Pueyo, F., and Sanso, M. (2012) Life expectancy and labor supply of the elderly. Journal of Population Economics, 25: 545568.
Alders, P., and Broer, D. P. (2005) Ageing, fertility and growth. Journal of Public Economics, 89: 10751095.
Cabo, F., and García-González, A. (2014) The endogenous determination of retirement age and social security benefits. Macroeconomic Dynamics, 18: 93113.
Chen, Y., and Lau, S.-H. P. (2014) Mortality decline, retirement age, and aggregate savings. Macroeconomic Dynamics, 31: 122.
Cigno, A. (1993) Intergenerational transfers without altruism: family, market and the state. European Journal of Political Economics, 9: 505518.
Cipriani, G. P. (2014) Population aging and PAYG pensions in the OLG model. Journal of Population Economics, 27: 251256.
Cipriani, G. P. (2018) Aging, retirement and pay-as-you-go pensions. Macroeconomic Dynamics, 22, 11731183.
Cremer, H., Gahvri, F., and Pestieau, P. (2011) Fertility, human capital and the pension system. Journal of Public Economics, 95: 12721279.
Eurostat (2014) Taxation Trends in the European Union: Data for the EU Member States, Iceland and Norway. Luxemburg: Publications Office of the European Union.
Fanti, L. (2014) Raising the mandatory retirement age and its effect on long-run income and pay-as-you-go (PAYG) pensions. Metroeconomica, 65: 619645.
Fanti, L. (2015) Growth, PAYG pension systems crisis and mandatory age of retirement. Economics Bulletin, 35: 11601167.
Fanti, L., and Gori, L. (2012) Fertility and PAYG pensions in the overlapping generations model. Journal of Population Economics, 25: 955961.
Gahvari, F. (2009) Pensions and fertility: in search of a link. International Tax and Public Finance, 16: 418442.
Istituto Nazionale di Statistica (Istat). Tavole di mortalità. Available online at http://demo.istat.it/unitav2012/index.html?lingua=ita.
Lachance, M.-E. (2008) Pension reductions: can welfare be preserved by delaying retirement? Journal of Pension Economics and Finance, 7: 157177.
Meier, V., and Wrede, M. (2010) Pensions, fertility, and education. Journal of Pension Economics and Finance, 9: 7593.
Menon, M., Pendakur, K., and Perali, F. (2012) On the expenditure-dependence of children's resource shares. Economics Letters, 117: 739742.
Michel, P., and Pestieau, P. (1993) Population growth and optimality. Journal of Public Economics, 6: 353362.
Miyazaki, K. (2014). The effects of the raising-the-official-pension-age policy in an overlapping generations economy. Economics Letters, 123: 329332.
Mizuno, M., and Yakita, A. (2013) Elderly labor supply and fertility decisions in aging-population economies. Economics Letters, 121: 395399.
Organisation for Economic Co-operation and Development (2015) Pensions at a Glance: OECD and G20 indicators. doi: 10.1787/pension_glance-2015-en.
Wigger, B. U. (1999) Pay-as-you-go financed public pensions in a model of endogenous growth and fertility. Journal of Population Economics, 12: 625640.
Yakita, A. (2001) Uncertain lifetime, fertility and social security. Journal of Population Economics, 14: 635640.
Yasuoka, M., and Goto, N. (2011) Pension and child care policies with endogenous fertility. Economic Modelling, 28: 24782482.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Pension Economics & Finance
  • ISSN: 1474-7472
  • EISSN: 1475-3022
  • URL: /core/journals/journal-of-pension-economics-and-finance
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords

Metrics

Full text views

Total number of HTML views: 1
Total number of PDF views: 30 *
Loading metrics...

Abstract views

Total abstract views: 164 *
Loading metrics...

* Views captured on Cambridge Core between 31st May 2018 - 14th August 2018. This data will be updated every 24 hours.