Fiscal incidence of unfunded pension system: an analytical investigation

Vincent Touzé ()
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Vincent Touzé: Observatoire Français des Conjonctures Économiques, Postal: 69, Quai d'Orsay, Paris 75007, France, http://www.ofce.sciences-po.fr

No 2005-03, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: This paper deals with the particular fiscal incidence induced by an unfunded pension system. That consists to understand how the financing and the calculus of pensions modify the transitory and long run macroeconomic dynamics. We develop an OLG model with endogenous labour supply in an economy with productive capital. A tax on the labour income is used to finance pensions. During the retirement, a part of the amount of the pension is exogenous and the other part is linked to the contributive effort during the working period. The method of analysis is not numerical but analytical. The results concern the identification of the steady state and the transitory dynamics. Then we proceed to a sensitive study of the dynamics with respect to changes of the payroll tax or the degree of contribution.

Keywords: monetary retirement; labor income tax; OLG models. (search for similar items in EconPapers)
JEL-codes: D91 H55 J26 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-acc and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:0503

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