Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145014
Authors: 
Dedry, Antoine
Onder, Harun
Pestieau, Pierre
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 5979
Abstract: 
This paper analyzes the impact of demographic aging on capital accumulation and welfare in economies with unfunded pensions. Using a two-period overlapping generation model with potentially endogenous retirement decisions, it shows that both the type of aging, i.e. declining fertility or increasing longevity, and the type of pension system, i.e. defined contributions or defined benefits, are important in understanding this impact. Results show that when aging is driven by increasing longevity, an unregulated retirement age system leads to a greater improvement in welfare. In contrast, with decreasing fertility, a mandatory retirement system with defined contributions fares better.
Subjects: 
aging
public finance sustainability
social security
JEL: 
H20
F42
H80
Document Type: 
Working Paper

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