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Social Security, Intergenerational Transfers, and Endogenous Growth

Junsen Zhang and Junxi Zhang

Canadian Journal of Economics, 1998, vol. 31, issue 5, 1225-1241

Abstract: In this paper, the effects of social security in a simple model of endogenous growth with alternative motives of having children are analyzed. It shows how the effects of social security depend on the size of the social security tax, the motive to have children, and the pattern of intergenerational transfers. The pattern of intergenerational transfers itself, however, is shown to change with the social security tax rate. When the social security tax is not too high, social security increases per capita income growth and tends to enhance welfare.

JEL-codes: H55 O41 (search for similar items in EconPapers)
Date: 1998
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