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AGING, RETIREMENT, AND PAY-AS-YOU-GO PENSIONS

Published online by Cambridge University Press:  14 June 2016

Giam Pietro Cipriani
Giam Pietro Cipriani*
Affiliation:
University of Verona and IZA
*
Address correspondence to: Giam Pietro Cipriani, Department of Economics, University of Verona, Polo Santa Marta, Via Cantarane 24, 37129 Verona, Italy; e-mail: giampietro.cipriani@univr.it.
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Abstract

In this paper, we consider the effects of population aging on a pay-as-you-go financed defined contributions pension scheme. We show that when retirement decisions are endogenous, aging increases the retirement age and the steady-state level of capital. The effect on pension payouts is in general ambiguous, except for the solution of full retirement, when this effect is unambiguously negative.

Keywords

PAYG PensionsAgingRetirementOverlapping Generations Model
Type
Articles
Information
Macroeconomic Dynamics , Volume 22 , Issue 5 , July 2018 , pp. 1173 - 1183
Copyright
Copyright © Cambridge University Press 2016 

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References

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