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| Joachim Thøgersen |
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| ''PAYG pensions and endogenous retirement revisited'' |
| ( 2022, Vol. 42 No.4 ) |
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| This paper presents an OLG model with endogenous retirement and endogenous
growth. The purpose is to show analytically the effects of a PAYG pension
system on the economy in such a setting. Firstly, it is shown that a PAYG system is neutral in capital intensity. Secondly, we analytically characterize the conditions that determine the effect of a PAYG system on welfare, and show that a PAYG system can be welfare improving. Thirdly, the analysis and the results apply to a non-steady-state equilibrium path. |
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| Keywords: Endogenous retirement, Public pensions, Overlapping Generations, Endogenous Growth |
JEL: D9 - Intertemporal Choice and Growth: General
H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General |
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| Manuscript Received : Apr 19 2022 | | Manuscript Accepted : Dec 30 2022 |
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