Title

Unfunded Pensions and Endogenous Labor Supply

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

7-2013

Journal or Book Title

Macroeconomic Dynamics

Volume

17

Issue

5

First Page or Article ID Number

971

Last Page

997

DOI

10.1017/S1365100511000794

Abstract

A classic result in dynamic public economics states that there is no welfare rationale for pay-as-you-go (PAYG) pensions in a dynamically efficient overlapping-generations economy with exogenous labor supply. Parenthetically, a welfare justification for PAYG pensions exists if the economy is dynamically inefficient. Under the sufficient condition that the old be no less risk-averse than the young, both these results extend to an economy with endogenous labor supply.

JEL Classification

E6, H3

Comments

This article is published as Unfunded pensions and endogenous labor supply (with Torben M Andersen), Macroeconomic Dynamics 17(5), 971-997, 2013. DOI: 10.1017/S1365100511000794. Posted with permission.

Copyright Owner

Cambridge University Press

Language

en

File Format

application/pdf

Published Version Working Paper

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