EconPapers    
Economics at your fingertips  
 

Efekt wypychania prywatnych transferow przez publiczny system emerytalny

The crowding out effect due to the introduction of the pension system

Agata Skorupka ()
Additional contact information
Agata Skorupka: Warsaw School od Economics, Poland

Catallaxy, 2018, vol. 3, issue 2, 103-110

Abstract: Motivation: According to the World Bank, the introduction of pension system crowds out 20–91% of private transfers. The effect is particularly strong for the poorest households, which shall be main beneficiaries of this reform. According to the views presented in literature, this inclines to the questioning of the pension system itself. Aim: The aim of the article is to answer the question, whether the introduction of obligatory pension system results in fact in crowding out of private transfers aimed to older people and, if the answer is positive, estimate the scale of the effect. It would allow to assess the effectiveness of the introduction of the pension system. Materials and methods: A critical review of empirical studies, presented in the literature was conducted and then verified using a modified OLG (overlapping generations) model. The simulation was made in the Dynare/Octave program. Results: It has been proved that even if the crowding out effect existed in its strongest form, it would not annihilate the sense of pension system. In the contrary, introduction of the latter would be profitable even in such a case — it would contribute to increase of consumption and social welfare.

Keywords: pension system; silver economy; OLG (search for similar items in EconPapers)
JEL-codes: J11 J14 J18 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.24136/cxy.2018.005 (application/pdf)

Related works:
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:pes:iercxy:v:3:y:2018:i:2:p:103-110

Access Statistics for this article

Catallaxy is currently edited by Ilona Pietryka

More articles in Catallaxy from Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Ilona Pietryka ().

 
Page updated 2019-01-05
Handle: RePEc:pes:iercxy:v:3:y:2018:i:2:p:103-110