Optimal social security in a dynastic model with investment externalities and endogenous fertility

Jinli Zeng () and Jie Zhang ()

No 1006, MRG Discussion Paper Series from School of Economics, University of Queensland, Australia

Abstract: This paper studies optimal pay-as-you-go social security with positive bequests and endogenous fertility. With an investment externality, a competitive solution without social security su?ers from under-investment in capital and over-reproduction of population. We show that social security can improve welfare by reducing fertility and increasing capital intensity. We also illustrate numerically that a small degree of this externality is enough to justify the observed high ratios of social security spending to GDP.

New Economics Papers: this item is included in nep-dge and nep-pub
View list of references

Downloads: (external link)
http://www.uq.edu.au/economics/mrg/1006.pdf (application/pdf)

Related works:
Journal Article: Optimal social security in a dynastic model with investment externalities and endogenous fertility (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:qld:uqmrg6:10

Access Statistics for this paper

More papers in MRG Discussion Paper Series from School of Economics, University of Queensland, Australia
Contact information at EDIRC.
Series data maintained by Tobin Millen ().