Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76556
Authors: 
Casarico, Alessandra
Devillanova, Carlo
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper 1038
Abstract: 
This paper analyses the general equilibrium implications of reforming pay-as-you-go pension systems in an economy with heterogeneous agents, human capital investment and capital-skill complementarity. It shows that increasing funding delivers in the long run higher physical and human capital and therefore higher output, but also higher wage and income inequality. The latter affects preferences over the degree of redistribution of e remaining pay-as-you-go component: despite the greater role that edistribution could perform in the new steady state, we find a preference for lower redistribution for a larger group of the population.
Subjects: 
capital-skill complementarity
inter and intragenerational redistribution
pay-as-you-go
fully funded
Document Type: 
Working Paper

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