EconStor >
Albert-Ludwigs-Universität Freiburg im Breisgau >
Institut für Volkswirtschaftslehre und Finanzwissenschaft I, Universität Freiburg >
Diskussionsbeiträge, Inst. f. Finanzwissenschaft, Universität Freiburg >

Please use this identifier to cite or link to this item:
Title:Intergenerational Fairness During Demographic Transition PDF Logo
Authors:Heidler, Matthias
Häcker, Jasmin
Issue Date:2004
Series/Report no.:Diskussionsbeiträge / Institut für Finanzwissenschaft der Albert-Ludwigs-Universität Freiburg im Breisgau 121
Abstract:Implementing a fairness component into a standard overlapping-generations model and allowing young individuals to vote on their own pension payments, we show that they adapt the pay-as-you-go pension scheme to future demographic changes. In particular, we explain why young generations cut their retirement benefits thus partially phasing out social security during a fertility decline. Carrying out a simulation, we furthermore calculate the costs of implementing fairness into utility. From the viewpoint of an individual, these costs are reduced by equalizing generational accounts. Hence, under certain conditions policy actions based on generational accounts may be compatible with intertemporal welfare maximization.
Subjects:intergenerational fairness
social security
Persistent Identifier of the first edition:urn:nbn:de:bsz:25-opus-18548
Document Type:Working Paper
Appears in Collections:Diskussionsbeiträge, Inst. f. Finanzwissenschaft, Universität Freiburg

Files in This Item:
File Description SizeFormat
121_04.pdf1.05 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.