Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81971 
Year of Publication: 
2001
Series/Report no.: 
EPRU Working Paper Series No. 2001-04
Publisher: 
University of Copenhagen, Economic Policy Research Unit (EPRU), Copenhagen
Abstract: 
This paper analyses a model of overlapping generations in which agents who do not participate in th elabor market are unable to borrow. Thus an increase in a fully funded pension raises aggregate savings even with a fixed participation rate since private savings are not crowded out one-for-one. When labor force participation is determined endogenously, a rise in the level of fully funded pensions increases the aggregate labor supply. This in turn increases aggregate savings and growth, directly by raising per capita savings and indirectly through tax and interest rate effects.
Document Type: 
Working Paper

Files in This Item:
File
Size
51.56 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.