EconPapers    
Economics at your fingertips  
 

The effects of aging and myopia on the pay-as-you-go social security systems of the G7

Rowena Pecchenino and Patricia Pollard ()

No 1998-023, Working Papers from Federal Reserve Bank of St. Louis

Abstract: The Social Security systems of the G7 countries were established in an era when populations were young and the number of contributors far outweighed the number of beneficiaries. Now, for each beneficiary there are fewer contributors, and this downward trend is projected to accelerate. To evaluate the prospects for these economies we develop an overlapping generations model in which growth is endogenously fueled by individuals' investments in physical and human capital and by the government's investment in human capital via public education expenditures. We analyze individuals' behavior when their expectations over their length of life are rational and adaptive (myopic). We examine for each of the economies and for each of the expectation assumptions whether policies exist that can offset the effects of aging, should they be adverse. Further, we examine how policies aimed at a specific target group affect the welfare of the economy as a whole.

Keywords: Social security; Group of Seven countries (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://research.stlouisfed.org/wp/more/1998-023 (application/pdf)
http://research.stlouisfed.org/wp/1998/98-023.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:fip:fedlwp:1998-023

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates ().

 
Page updated 2023-01-28
Handle: RePEc:fip:fedlwp:1998-023