EconPapers    
Economics at your fingertips  
 

Redistribution, Pension Systems and Capital Accumulation

Christophe Hachon ()

Financial Theory and Practice, 2008, vol. 32, issue 3, 339-368

Abstract: In this paper we study the macroeconomic impact of a policy which changes the redistributive properties of an unfunded pension system. Using an overlapping generations model with a closed economy and heterogeneous agents, we show that a weaker link between contributions and benefits has an impact on the level of capital per capita if and only if there are inequalities in the length of life. Furthermore, this policy has positive implications for every economic agent if the system has a defined-benefit structure. The tax rate and inequalities decrease, whereas the wealth of each agent increases. However, with a defined-contribution pension system, this policy has a negative impact on every macroeconomic variable except on the wealth of the poorest agents.

Keywords: inequality; pension systems; redistribution; capital (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.ijf.hr/eng/FTP/2008/3/hachon.pdf (application/pdf)

Related works:
Working Paper: Redistribution, Pension Systems and Capital Accumulation (2008) Downloads
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: https://EconPapers.repec.org/RePEc:ipf:finteo:v:32:y:2008:i:3:p:339-368

Access Statistics for this article

More articles in Financial Theory and Practice from Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Martina Fabris ().

 
Page updated 2022-05-22
Handle: RePEc:ipf:finteo:v:32:y:2008:i:3:p:339-368