Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/21054 
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dc.contributor.authorBarbie, Martinen
dc.contributor.authorHagedorn, Marcusen
dc.contributor.authorKaul, Ashoken
dc.date.accessioned2009-01-28T16:18:59Z-
dc.date.available2009-01-28T16:18:59Z-
dc.date.issued2000-
dc.identifier.urihttp://hdl.handle.net/10419/21054-
dc.description.abstractWe analyze the interaction between risk sharing and capital accumulation in a stochastic OLGmodel with production. We give a complete characterization of interim Pareto optimality. Ourcharacterization also subsumes equilibria with a PAYG social security system. In a competitiveequilibrium interim Pareto optimality is equivalent to intergenerational exchange efficiency, whichin turn implies dynamic efficiency. Furthermore, contrary to the case of certainty, dynamic efficiencydoes not rule out a Pareto-improving role for a social security system. Social security canprovide insurance against macroeconomic risk, namely aggregate productivity risk in the secondperiod of life (old age) through dynamic risk sharing. The mechanism through which socialsecurity can Pareto-improve market allocations resembles a Ponzi scheme. But instead of rollingover debt, we can interpret our scheme as one that raises contributions and then rolls over aninsurance contract.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x209en
dc.subject.jelH55en
dc.subject.jelD61en
dc.subject.ddc330en
dc.subject.keywordStochastic OLG Modelen
dc.subject.keywordDynamic Efficiencyen
dc.subject.keywordInterim Pareto Optimalityen
dc.subject.keywordSocial Securityen
dc.subject.keywordRisk Sharingen
dc.subject.stwSoziale Sicherungen
dc.subject.stwSozialversicherungsfinanzierungen
dc.subject.stwOverlapping Generationsen
dc.subject.stwStochastischer Prozessen
dc.subject.stwInvestitionen
dc.subject.stwDynamisches Gleichgewichten
dc.subject.stwAllokationseffizienzen
dc.subject.stwPareto-Optimumen
dc.subject.stwTheorieen
dc.titleDynamic Efficiency and Pareto Optimality in a Stochastic OLG Model with Production and Social Security-
dc.typeWorking Paperen
dc.identifier.ppn835474917en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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