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| Lars Kunze |
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| ''Intergenerational transfers, mandatory retirement and economic growth'' |
| ( 2025, Vol. 45 No.4 ) |
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| This paper investigates the relationship between economic growth
and the mandatory retirement age in an overlapping generations model with family altruism. It is shown that the relationship between the mandatory retirement age and economic growth is inverted U-shaped so that an increase in the mandatory retirement age beyond its growth-maximizing level may harm growth if bequests are not operative within the family whereas the growth effect is unambiguously positive with operative bequests. Our findings highlight the importance of intergenerational transfers in determining the overall growth effect.
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| Keywords: mandatory retirement, growth, family altruism |
JEL: D9 - Intertemporal Choice and Growth: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Jul 30 2025 | | Manuscript Accepted : Dec 30 2025 |
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