Aging, Social Security Design, and Capital Accumulation
This paper analyzes the impact of aging on capital accumulation and welfare in a country with a sizable unfunded social security system. Using a two-period overlapping generation model with endogenous retirement decisions, the paper shows that the...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/09/25076835/aging-social-security-design-capital-accumulation http://hdl.handle.net/10986/22840 |
| Summary: | This paper analyzes the impact of aging
on capital accumulation and welfare in a country with a
sizable unfunded social security system. Using a two-period
overlapping generation model with endogenous retirement
decisions, the paper shows that the type of aging and the
type of unfunded social security system are important in
understanding this impact. The analysis compares two types
of demographic changes, declining fertility and increasing
longevity; three types of pensions, defined contributions,
defined benefits, and defined annuities; as well as
mandatory and optimal retirement systems to investigate the
differences in implications of aging. |
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