EconPapers    
Economics at your fingertips  
 

Aging, myopia and the pay-as-you-go public pension systems of the G7: a bright future?

Rowena Pecchenino and Patricia Pollard ()

No 2000-015, Working Papers from Federal Reserve Bank of St. Louis

Abstract: The public pension systems of the G7 countries were established in an era when the number of contributors far outweighed the number of beneficiaries. Now, for each beneficiary there are fewer contributors, and this trend is projected to accelerate. To evaluate the prospects for these economies we develop an overlapping generations model where growth is endogenously fueled by investments in physical and human capital. We analyze individuals' behavior when their expectations over their length of life are rational or myopic and examine whether policies exist that can offset the effects of aging, should they be adverse. We find that while perfectly anticipated aging is welfare improving and does not threaten the solvency of public pension systems, myopia worsens welfare, puts pension systems at risk, and cannot be easily remedied by public policy.

Keywords: Social; security (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://research.stlouisfed.org/wp/more/2000-015/ (application/pdf)
http://research.stlouisfed.org/wp/2000/2000-015.pdf

Related works:
Journal Article: Aging, Myopia, and the Pay‐As‐You‐Go Public Pension Systems of the G7: A Bright Future? (2005) 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:fip:fedlwp:2000-015

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 2023-02-04
Handle: RePEc:fip:fedlwp:2000-015