Growing old and staying young: population policy in an ageing closed economy

Groezen, Bas van; Meijdam, Lex

doi:10.1007/s00148-006-0067-x

Cited by 53 publications

(41 citation statements)

References 18 publications

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“…As a remedy against the potential negative effects of the fertility crisis on PAYG pensions, it has been suggested, amongst other things, to incentive families to have more children in order to increase the ratio of economically active to total population, for instance through the public provision of child allowances (van Groezen et al, 2003;van Groezen and Meijdam, 2008).…”

Section: Introductionmentioning

confidence: 99%

Fertility-related pensions and cyclical instability

Fanti

Gori

2013

J Popul Econ

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We show that the introduction of unfunded public pensions in a Cobb-Douglas economy with overlapping generations and endogenous fertility may cause complex economic cycles when individuals are short-sighted. In particular, the risk of cyclical instability increases with both the individual degree of thriftiness and the relative weight of individual fertility in the pension system. Our results provide a possible explanation of the occurrence of persistent cycles in an overlapping generations context and represent a policy warning about the dramatic destabilising effects of a fertility-related pension reform.

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Section: Introductionmentioning

confidence: 99%

Fertility-related pensions and cyclical instability

Fanti

Gori

2013

J Popul Econ

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“…If the fertility rate is higher, an additional pension financed by a consumption tax is larger, as shown by (12). Therefore, given high fertility, every generation's utility increases and Pareto improving allocations are achieved.…”

Section: Propositionmentioning

confidence: 99%

“…Considering (12), (13), and (19), we obtain the condition to raise the younger generation's utility.…”

Section: Additional Pension Benefitmentioning

confidence: 99%

Are the social security benefits of pensions or child-care policies best financed by a consumption tax?

Jinno¹,

Yasuoka²

2016

BEH

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Our paper sets an endogenous fertility model and examines how tax revenues derived from a consumption tax should be used for social security benefits such as pension and child-care policies. An additional pension financed by a consumption tax can achieve Pareto-improving allocations. Child allowances and an education subsidy decrease the older generation's utility because of tax burdens and the lack of additional benefit. Even if child allowances can raise the share of young people in society and some future generation's utility, that future generation's utility decreases because of a decrease in income growth. However, with certain parametric conditions, an education subsidy can raise every generation's utility, except for that of the older generation, because of the increase in income growth.JEL Classification: H55, I20, J13, H20

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“…Various researchers have discussed the influence which public policies have had on fertility rates since World War II (McDonald 2006;Vos 2009;Neyer 2013). In the relevant literature, several authors voice the opinion that the decrease in fertility is a consequence of the pension system (Van Groezen, Leers, and Meijdam 2003;Sinn 2007;Cigno and Werding 2007;Ehrlich and Kim 2007;Van Groezen and Meijdam 2008;Gahvari 2009;Cigno 2010;Fenge and von Weizsäcker 2010;Regös 2014;Boldrin, De Nardi, and Jones 2015). However, all these studies focus on periods later than 1960.…”

Section: Introductionmentioning

confidence: 99%