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Aging, Pensions, and Growth

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  • Tetsuo Ono

Abstract

This study presents an endogenous-growth overlapping-generations model featuring probabilistic voting over public pensions. The analysis shows that (i) the pension---GDP ratio increases as life expectancy increases in the presence of an annuity market, while it may show a hump-shaped pattern in its absence; (ii) the growth rate is higher in the presence of an annuity market than in its absence, but its presence implies an intergenerational trade-off in terms of utility.

Suggested Citation

  • Tetsuo Ono, 2017. "Aging, Pensions, and Growth," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 73(2), pages 163-189, June.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201706)73:2_163:apag_2.0.tx_2-y
    DOI: 10.1628/001522108X14877521353519
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    1. Toshiki Tamai, 2023. "Social security, economic growth, and social welfare in an overlapping generation model with idiosyncratic TFP shock and heterogeneous workers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1829-1862, July.

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    More about this item

    Keywords

    economic growth; population aging; probabilistic voting; public pensions; annuity market;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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