PAYG pensions and economic cycles

Luciano Fanti and Luca Gori ()

MPRA Paper from University Library of Munich, Germany

Abstract: This article analyses the dynamics of an overlapping generations economy (Diamond, 1965) with pay-as-you-go financed public pensions and myopic expectations. It is shown that large PAYG pensions triggers economic fluctuations depending on the mutual relationship between technology and preference parameters. Our findings constitute a policy warning about the size of social security and provide another explanation of the occurrence of persistent cycles.

Keywords: Myopic foresight; PAYG pensions; Stability; OLG model (search for similar items in EconPapers)
JEL-codes: C62 H55 J26 (search for similar items in EconPapers)
Date: 2010-01-12
New Economics Papers: this item is included in nep-age and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/19984/1/MPRA_paper_19984.pdf original version (application/pdf)

Related works:
Journal Article: PAYG Pensions and Economic Cycles (2012)
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:pra:mprapa:19984

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().