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Pension policies in a model with endogenous fertility

Published online by Cambridge University Press:  31 May 2018

GIAM PIETRO CIPRIANI Open the ORCID record for GIAM PIETRO CIPRIANI [Opens in a new window]  and
FRANCESCO PASCUCCI
GIAM PIETRO CIPRIANI
Affiliation:
Department of Economics, University of Verona and IZA, Verona, Italy (e-mail: giampietro.cipriani@univr.it)
FRANCESCO PASCUCCI
Affiliation:
Department of Economics, University of Verona, Verona, Italy
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Abstract

We set up an overlapping-generations model with endogenous fertility to study pensions policies in an ageing economy. We show that an increasing life expectancy may not be detrimental for the economy or the pension system itself. On the other hand, conventional policy measures, such as increasing the retirement age or changing the social security contribution rate could have undesired general equilibrium effects. In particular, both policies decrease capital per worker and might have negative effects on the fertility rate, thus exacerbating population ageing.

Keywords

D15H55J18J26Overlapping generationspension policiesendogenous fertilityageing
Type
Article
Information
Journal of Pension Economics & Finance , Volume 19 , Issue 1 , January 2020 , pp. 109 - 125
Copyright
Copyright © Cambridge University Press 2018 

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