International Welfare Spillovers of National Pension Schemes
Staveley-O’Carroll James () and
Staveley-O’Carroll Olena M.
Additional contact information
Staveley-O’Carroll James: Economics Division, Babson College, Westgate Hall, 231 Forest Street, Babson Park, MA02457USA
Staveley-O’Carroll Olena M.: Department of Economics and Accounting, College of the Holy Cross, One College Street, Worcester, MA01610, USA
The B.E. Journal of Macroeconomics, 2021, vol. 21, issue 1, 363-397
We employ a two-country overlapping-generations model to explore the international dimension of household portfolio choices induced by the asymmetric provision of government-run pensions. We study the resulting patterns of risk-sharing and the corresponding welfare effects on both home and foreign agents. Introducing the defined benefits pay-as-you-go system at home increases the welfare of all other agents at the expense of the home workers and improves the degree of intergenerational risk sharing abroad. Conversely, a defined contributions system leads to welfare losses of both home cohorts accompanied by gains abroad, but does increase the extent of intergenerational risk sharing at home.
Keywords: welfare; pay-as-you-go system; international portfolio choice; OLG model (search for similar items in EconPapers)
JEL-codes: D52 F21 F41 G11 H55 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
For access to full text, subscription to the journal or payment for the individual article is required.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejmac:v:21:y:2021:i:1:p:363-397:n:5
Ordering information: This journal article can be ordered from
Access Statistics for this article
The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti
More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().