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Joachim Thøgersen
''PAYG pensions and endogenous retirement revisited''
( 2022, Vol. 42 No.4 )
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.
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
Manuscript Received : Apr 19 2022 Manuscript Accepted : Dec 30 2022

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