International Welfare Spillovers of National Pension Schemes
James Staveley-O'Carroll and
Olena Staveley-O'Carroll ()
No 1903, Working Papers from College of the Holy Cross, Department of Economics
We employ a two-country overlapping-generations model to explore the international dimension of household portfolio choices induced by the asymmetric provision of government-run pensions. We study the resulting patterns of risk-sharing and the corresponding welfare effects on both home and foreign agents. Introducing the de?fined benefi?ts pay-as-you-go system at home increases the welfare of all other agents at the expense of the home workers and improves the degree of intergenerational risk sharing abroad. Conversely, a defi?ned contributions system leads to welfare losses of both home cohorts accompanied by gains abroad, but does increase the extent of intergenerational risk sharing at home.
Keywords: welfare; pay-as-you-go system; international portfolio choice; OLG model (search for similar items in EconPapers)
JEL-codes: D52 F21 F41 G11 H55 (search for similar items in EconPapers)
Pages: 35 pages
New Economics Papers: this item is included in nep-age, nep-dge, nep-ore and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:hcx:wpaper:1903
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