Pareto efficiency of the pay-as-you-go pension system in a three-period-OLG model

Matthias Wrede

No 27, BERG Working Paper Series from Bamberg University, Bamberg Economic Research Group

Abstract: The paper considers an unfunded linear pension system when workers make labor decisions more often than once in their life. To capture this feature, a three-period-overlapping-generations model is employed. On the one hand, the paper analyzes whether or not a Pay-as-you-go pension scheme is intergenerational Pareto efficient when labor is elastically supplied by the young and the middle-aged people. On the other hand, the focus is on the interregional efficiency of a Pay-as-you-go system when young and middle-aged workers are mobile.

Keywords: pay-as-you-go pension system; overlapping-generations model; intergenerational fairness; labor mobility (search for similar items in EconPapers)
JEL-codes: H55 J26 J61 (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bamber:27

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