Aging, Social Security Design, and Capital Accumulation

Antoine Dedry, Harun Onder and Pierre Pestieau

No 5979, CESifo Working Paper Series from CESifo

Abstract: This paper analyzes the impact of demographic aging on capital accumulation and welfare in economies with unfunded pensions. Using a two-period overlapping generation model with potentially endogenous retirement decisions, it shows that both the type of aging, i.e. declining fertility or increasing longevity, and the type of pension system, i.e. defined contributions or defined benefits, are important in understanding this impact. Results show that when aging is driven by increasing longevity, an unregulated retirement age system leads to a greater improvement in welfare. In contrast, with decreasing fertility, a mandatory retirement system with defined contributions fares better.

Keywords: aging; public finance sustainability; social security (search for similar items in EconPapers)
JEL-codes: F42 H20 H80 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Aging, social security design, and capital accumulation (2017)
Working Paper: Aging, social security design and capital accumulation (2017)
Working Paper: Aging, Social Security Design, and Capital Accumulation (2015)
Working Paper: Aging, social security design, and capital accumulation (2015)
Working Paper: Aging, social security design and capital accumulation (2014)
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