Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171480
Authors: 
Bretschger, Lucas
Pittel, Karen
Year of Publication: 
2005
Series/Report no.: 
Economics Working Paper Series 05/36
Abstract: 
We analyse long-term consumption paths in a dynamic two-sector economy with overlapping generations. Each young generation saves for the retirement age, both with private savings and pension funds. The productivity of each sector can be raised by sector-specific research while the essential use of a non-renewable natural resource poses a threat to consumption possibilities in the long run. Bonds, the two types innovations, and resource stocks are the different investment opportunities. We show that pension funds have a positive impact on long-term development, provided that individuals have a preference for own investments. In this case, sustainability is more likely to be achieved due to pension fund savings.
Subjects: 
Pension funds
sustainable development
financial investments
overlapping generations
JEL: 
O4
Q01
Q3
G23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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