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dc.contributor.authorRada, Codrinaen_US
dc.date.accessioned2012-02-22en_US
dc.date.accessioned2012-09-28T12:40:13Z-
dc.date.available2012-09-28T12:40:13Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/64467-
dc.description.abstractThis paper compares fully-funded (FF) and pay-as-you-go (paygo) pension plans in a Keynesian framework for an economy with overlapping generations and excess capacity. The model addresses both short/medium-run equilibria and steady-states. Income distribution and class conflict, two crucial aspects of the political economy of pensions, become multidimensional. In a fully-funded economy class conflict between capitalists and labor gets diffused in the short-run by retirees' own interest to maintain a high profit share. In the longrun capitalists recognize that they can control their net share of profits by controlling employment and therefore the number of future retirees through capital accumulation. An extension of the model can show that fiscal policy is not always helpful in a fully-funded economy. A pay-as-you-go economy maintains a closer resemblance to the classical story of class conflict over income distribution. This is because workers and retirees have their interests aligned with the wage share. In this case fiscal policy through spending can be effective without creating a debt problem.en_US
dc.language.isoengen_US
dc.publisherUniv. of Utah, Dep. of Economics Salt Lake City, Utahen_US
dc.relation.ispartofseriesWorking Paper, University of Utah, Department of Economics 2012-02en_US
dc.subject.jelE24en_US
dc.subject.jelE12en_US
dc.subject.jelG23en_US
dc.subject.jelH55en_US
dc.subject.ddc330en_US
dc.subject.keywordprivate accountsen_US
dc.subject.keywordsocial securityen_US
dc.subject.keywordKeynesian economicsen_US
dc.subject.keyworddistributive conflicten_US
dc.titleThe economics of pensions: Remarks on growth, policy and class conflicten_US
dc.typeWorking Paperen_US
dc.identifier.ppn686634829en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Department of Economics Working Paper Series, University of Utah

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