Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82670
Authors: 
Zamac, Jovan
Year of Publication: 
2005
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2005:13
Abstract: 
This study investigates the general equilibrium effects of a fertility shock under different intergenerational transfer schemes. The effects on lifetime income and utility for different generations, as well as the effects on factor prices, are analyzed in a three-period overlapping generations model where the workers provide for the young and the retired under different tax schemes. The economic effects of a fertility shock vary substantially with different intergenerational transfer schemes. How wages, interest rate and savings will evolve differs not only quantitatively but also qualitatively. To minimize the effects from a fertility shock it is vital that the effects on human capital are minimized. For a baby boom shock this implies that a higher fraction of output must be devoted to human capital accumulation, during the educational years of the baby boom generation. With respect to transfers to the old, the tax rate should not be fixed.
Subjects: 
Intergenerational transfers
demography
social security
education
JEL: 
H52
H55
J13
Document Type: 
Working Paper

Files in This Item:
File
Size
610.54 kB





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