A Savings Subsidization System in a Model of Endogenous Fertility and Endogenous Growth

Title
A Savings Subsidization System in a Model of Endogenous Fertility and Endogenous Growth
Publication Date
2006
Author(s)
Ho, Chong Mun
Dollery, Brian Edward
Editor
Editor(s): John Roufagalas
Type of document
Book Chapter
Language
en
Entity Type
Publication
Publisher
Athens Institute for Education and Research (ATINER)
Place of publication
Athens, Greece
Edition
1
UNE publication id
une:4828
Abstract
The Phenomenon of population aging is now an established demographic characteristic of many economies. Public policy makers are thus increasingly concerned about the economic consequences of large numbers of retired citizens. Economists working in the endogenous growth theory tradition have sought to model the relationship between public pensions, financed on a 'Pay-As-You-Go (hereafter PAYG) basis, and the growth in per capita incomes. It appears that the resultant intergenerational wealth redistribution from young to older people seems to decrease private savings, diminish capital accumulation, and lower the growth of per capita incomes (see, for instance, King and Ferguson (1993)). The underlying transmission mechanism appears to be a crowding out effect in private capital markets contingent upon the introduction of public pension systems.
Link
Citation
Resource Allocation and Institutions: Explorations in Economics, Finance and Law, p. 45-55
ISBN
9606672018
Start page
45
End page
55

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