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dc.contributor.authorBarbie, Martinen_US
dc.contributor.authorHagedorn, Marcusen_US
dc.contributor.authorKaul, Ashoken_US
dc.date.accessioned2009-01-28T16:18:59Z-
dc.date.available2009-01-28T16:18:59Z-
dc.date.issued2000en_US
dc.identifier.urihttp://hdl.handle.net/10419/21054-
dc.description.abstractWe analyze the interaction between risk sharing and capital accumulation in a stochastic OLG model with production. We give a complete characterization of interim Pareto optimality. Our characterization also subsumes equilibria with a PAYG social security system. In a competitive equilibrium interim Pareto optimality is equivalent to intergenerational exchange efficiency, which in turn implies dynamic efficiency. Furthermore, contrary to the case of certainty, dynamic efficiency does not rule out a Pareto-improving role for a social security system. Social security can provide insurance against macroeconomic risk, namely aggregate productivity risk in the second period of life (old age) through dynamic risk sharing. The mechanism through which social security can Pareto-improve market allocations resembles a Ponzi scheme. But instead of rolling over debt, we can interpret our scheme as one that raises contributions and then rolls over an insurance contract.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 209en_US
dc.subject.jelH55en_US
dc.subject.jelD61en_US
dc.subject.ddc330en_US
dc.subject.keywordStochastic OLG Modelen_US
dc.subject.keywordDynamic Efficiencyen_US
dc.subject.keywordInterim Pareto Optimalityen_US
dc.subject.keywordSocial Securityen_US
dc.subject.keywordRisk Sharingen_US
dc.subject.stwSoziale Sicherungen_US
dc.subject.stwSozialversicherungsfinanzierungen_US
dc.subject.stwOverlapping Generationsen_US
dc.subject.stwStochastischer Prozessen_US
dc.subject.stwInvestitionen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwAllokationseffizienzen_US
dc.subject.stwPareto-Optimumen_US
dc.subject.stwTheorieen_US
dc.titleDynamic Efficiency and Pareto Optimality in a Stochastic OLG Model with Production and Social Securityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn323540597en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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