 Trade And Pension SystemsNo 2006,1, Working Papers in Economics from Bundeswehr University Munich, Economic Research Group Abstract: This article concentrates on the possible relationship between trade and pension systems. I consider trade between a capital-abundant home and a labor-abundant foreign country. The underlying model is a two-period overlapping generations-model augmented with factor-price changes resulting from price-variations through globalization. First, I analyze the resulting income effects of the young generation and of the retirees in a pay-as-you-go (PAYG) pension system and a fully funded pension system. Considering contribution rates and population growth, the retirees might improve their income situation in a fully funded system. Second, I analyze the effects on life income when a pension system change is implemented simultaneous with the reduction of trade barriers. A less expensive change can be expected, if free trade is permitted. Keywords: Umlageverfahren; Kapitalgedecktes Rentensystem; Heckscher-Ohlin-Samuelson; Handel mit Niedrig-Lohn-Ländern; Pay-as-you-go pension system; fully funded pension system; Heckscher-Ohlin-Samuelson; trade with low-wage-countries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:zbw:ubwwpe:20061 Access Statistics for this paper More papers in Working Papers in Economics from Bundeswehr University Munich, Economic Research Group Contact information at EDIRC. |
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