The paper evaluates the theoretical literature on public pension schemes. First, the terms pay-as-you-go and capital reserve are made precise. These two systems are then compared, followed by a consideration of their efficiency properties. Thereafter conversion policies are discussed.
Public Pensions Overlapping Generations
This is a postprint of a paper that was published 1997 in H. Giersch (Ed.): Reforming the Welfare State. Berlin: Springer-Verlag, pp. 233-246.