Pecchenino, Rowena A. and Utendorf, Kelvin R.
Social Security, Social Welfare and the Aging Population.
Journal of Population Economics, 12 (4).
This study examines the effects of pay-as-you-go social security programs in aging economies when the middle-aged both educate their dependent children and subsidize the retirement of the old. Using an overlapping generations framework in which agents are three-period lived but timing of death in the third period is uncertain, we analyze the effects of social security tax schemes, under various demographic assumptions, on capital accumulation, education expenditures, social welfare, and economic growth. We find that in many cases social security crowds out education, and reduces economic growth and social welfare.
||Preprint version of original published article. The original publication is available at www.springerlink.com. Pecchenino is grateful for the hospitality of the International Centre for Economic Research, Turin, Italy, where much of the work was accomplished. We are also grateful to the seminar participants at Michigan State University, the Universitá di Torino, and the University of Western Ontario for their comments. All remaining errors are the authors’ alone.
||Social Security; Education; Endogenous growth; Social Welfare; Aging; Population;
||Social Sciences > Economics
Prof. Rowena Pecchenino
||26 Oct 2011 14:40
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