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...

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Main Authors: Dedry, Antoine, Onder, Harun, Pestieau, Pierre
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2015/09/25076835/aging-social-security-design-capital-accumulation
http://hdl.handle.net/10986/22840
id okr-10986-22840
recordtype oai_dc
spelling okr-10986-228402021-04-23T14:04:11Z Aging, Social Security Design, and Capital Accumulation Dedry, Antoine Onder, Harun Pestieau, Pierre DEFINED CONTRIBUTIONS CAPITAL MARKETS ECONOMIC GROWTH PRODUCTION CAPITAL ACCUMULATION UNFUNDED PENSIONS OLD AGE RETIREMENT MORTALITY DECLINE INCOME INTEREST CAPITAL ACCUMULATIONS MANDATORY RETIREMENT PENSION SYSTEMS EXCHANGE EQUILIBRIUM VALUE UTILITY MAXIMIZATION INCOME GROUP LABOR FORCE PENSION CONTRIBUTION DEVELOPING COUNTRIES DEMOGRAPHIC FACTORS WELFARE ECONOMIC IMPLICATIONS EFFECTS INCENTIVES EQUILIBRIUM POLICY DISCUSSIONS RETIREMENT SYSTEM FACTORS OF PRODUCTION MARGINAL PRODUCTIVITY CAPITAL STOCK TAX LABOR FORCE PARTICIPATION PENSION SYSTEM REAL WAGES WEALTH SAVING EARLY RETIREMENT OLD-AGE PENSION RETIREMENT AGES LIFE EXPECTANCY LABOR MARKET SAVINGS RATE OF POPULATION GROWTH DEVELOPMENT ECONOMICS POPULATION GROWTH FERTILITY RATES INCOME INEQUALITY BABY RETIREMENT AGE PRODUCTIVITY MIGRATION CRITERIA MARKETS OVERLAPPING GENERATIONS MODEL ORGANIZATIONS SOCIAL SECURITY ECONOMICS LITERATURE DEPENDENCY RATIO LABOR UTILITY MORTALITY STATIC EQUILIBRIUM ELDERLY TAXES RESPECT PROGRESS DEFINED BENEFIT DEMOGRAPHIC TRANSITION CONSUMPTION HUMAN CAPITAL YOUNG AGE SOCIAL SECURITY SYSTEMS CAPITAL WAGES POLICIES ANNUITIES FUTURE POLICY RESEARCH WORKING PAPER VALUE PENSIONS CONTRIBUTION RATE MACROECONOMICS DEMOGRAPHIC CHANGE ENVIRONMENTAL CONCERNS UTILITY FUNCTION SHARE OF CAPITAL SHARES EQUILIBRIUM VALUES ELDERLY PEOPLE ECONOMICS POLICY PRODUCTION FUNCTION OUTPUT MANAGEMENT FUNCTIONAL FORMS DEMOGRAPHIC CHANGES THEORY CONTRIBUTION SYSTEM SECURITY WARS ANNUITY INVESTMENT WORLD POPULATION SHARE NUMBER OF CHILDREN LOWER FERTILITY FUNDED PENSIONS POPULATION SOCIAL SECURITY SYSTEM RETIREMENT DECISIONS PENSION COVERAGE POLICY RESEARCH FERTILITY DEMOGRAPHIC HEALTHY LIFE CAPITAL INVESTMENT RETIREMENT INCENTIVES OUTCOMES DECLINE IN FERTILITY RETIREMENT SYSTEMS DEFINED BENEFITS LEVEL OF FERTILITY DEVELOPMENT POLICY BOOM GENERATIONS FUTURE RESEARCH 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. 2015-11-04T21:33:11Z 2015-11-04T21:33:11Z 2015-09 Working Paper http://documents.worldbank.org/curated/en/2015/09/25076835/aging-social-security-design-capital-accumulation http://hdl.handle.net/10986/22840 English en_US Policy Research working paper,no. WPS 7418; Policy Research Working Paper;No. 7418 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic DEFINED CONTRIBUTIONS
CAPITAL MARKETS
ECONOMIC GROWTH
PRODUCTION
CAPITAL ACCUMULATION
UNFUNDED PENSIONS
OLD AGE
RETIREMENT
MORTALITY DECLINE
INCOME
INTEREST
CAPITAL ACCUMULATIONS
MANDATORY RETIREMENT
PENSION SYSTEMS
EXCHANGE
EQUILIBRIUM VALUE
UTILITY MAXIMIZATION
INCOME GROUP
LABOR FORCE
PENSION CONTRIBUTION
DEVELOPING COUNTRIES
DEMOGRAPHIC FACTORS
WELFARE
ECONOMIC IMPLICATIONS
EFFECTS
INCENTIVES
EQUILIBRIUM
POLICY DISCUSSIONS
RETIREMENT SYSTEM
FACTORS OF PRODUCTION
MARGINAL PRODUCTIVITY
CAPITAL STOCK
TAX
LABOR FORCE PARTICIPATION
PENSION SYSTEM
REAL WAGES
WEALTH
SAVING
EARLY RETIREMENT
OLD-AGE
PENSION
RETIREMENT AGES
LIFE EXPECTANCY
LABOR MARKET
SAVINGS
RATE OF POPULATION GROWTH
DEVELOPMENT ECONOMICS
POPULATION GROWTH
FERTILITY RATES
INCOME INEQUALITY
BABY
RETIREMENT AGE
PRODUCTIVITY
MIGRATION
CRITERIA
MARKETS
OVERLAPPING GENERATIONS MODEL
ORGANIZATIONS
SOCIAL SECURITY
ECONOMICS LITERATURE
DEPENDENCY RATIO
LABOR
UTILITY
MORTALITY
STATIC EQUILIBRIUM
ELDERLY
TAXES
RESPECT
PROGRESS
DEFINED BENEFIT
DEMOGRAPHIC TRANSITION
CONSUMPTION
HUMAN CAPITAL
YOUNG AGE
SOCIAL SECURITY SYSTEMS
CAPITAL
WAGES
POLICIES
ANNUITIES
FUTURE
POLICY RESEARCH WORKING PAPER
VALUE
PENSIONS
CONTRIBUTION RATE
MACROECONOMICS
DEMOGRAPHIC CHANGE
ENVIRONMENTAL CONCERNS
UTILITY FUNCTION
SHARE OF CAPITAL
SHARES
EQUILIBRIUM VALUES
ELDERLY PEOPLE
ECONOMICS
POLICY
PRODUCTION FUNCTION
OUTPUT
MANAGEMENT
FUNCTIONAL FORMS
DEMOGRAPHIC CHANGES
THEORY
CONTRIBUTION SYSTEM
SECURITY
WARS
ANNUITY
INVESTMENT
WORLD POPULATION
SHARE
NUMBER OF CHILDREN
LOWER FERTILITY
FUNDED PENSIONS
POPULATION
SOCIAL SECURITY SYSTEM
RETIREMENT DECISIONS
PENSION COVERAGE
POLICY RESEARCH
FERTILITY
DEMOGRAPHIC
HEALTHY LIFE
CAPITAL INVESTMENT
RETIREMENT INCENTIVES
OUTCOMES
DECLINE IN FERTILITY
RETIREMENT SYSTEMS
DEFINED BENEFITS
LEVEL OF FERTILITY
DEVELOPMENT POLICY
BOOM GENERATIONS
FUTURE RESEARCH
spellingShingle DEFINED CONTRIBUTIONS
CAPITAL MARKETS
ECONOMIC GROWTH
PRODUCTION
CAPITAL ACCUMULATION
UNFUNDED PENSIONS
OLD AGE
RETIREMENT
MORTALITY DECLINE
INCOME
INTEREST
CAPITAL ACCUMULATIONS
MANDATORY RETIREMENT
PENSION SYSTEMS
EXCHANGE
EQUILIBRIUM VALUE
UTILITY MAXIMIZATION
INCOME GROUP
LABOR FORCE
PENSION CONTRIBUTION
DEVELOPING COUNTRIES
DEMOGRAPHIC FACTORS
WELFARE
ECONOMIC IMPLICATIONS
EFFECTS
INCENTIVES
EQUILIBRIUM
POLICY DISCUSSIONS
RETIREMENT SYSTEM
FACTORS OF PRODUCTION
MARGINAL PRODUCTIVITY
CAPITAL STOCK
TAX
LABOR FORCE PARTICIPATION
PENSION SYSTEM
REAL WAGES
WEALTH
SAVING
EARLY RETIREMENT
OLD-AGE
PENSION
RETIREMENT AGES
LIFE EXPECTANCY
LABOR MARKET
SAVINGS
RATE OF POPULATION GROWTH
DEVELOPMENT ECONOMICS
POPULATION GROWTH
FERTILITY RATES
INCOME INEQUALITY
BABY
RETIREMENT AGE
PRODUCTIVITY
MIGRATION
CRITERIA
MARKETS
OVERLAPPING GENERATIONS MODEL
ORGANIZATIONS
SOCIAL SECURITY
ECONOMICS LITERATURE
DEPENDENCY RATIO
LABOR
UTILITY
MORTALITY
STATIC EQUILIBRIUM
ELDERLY
TAXES
RESPECT
PROGRESS
DEFINED BENEFIT
DEMOGRAPHIC TRANSITION
CONSUMPTION
HUMAN CAPITAL
YOUNG AGE
SOCIAL SECURITY SYSTEMS
CAPITAL
WAGES
POLICIES
ANNUITIES
FUTURE
POLICY RESEARCH WORKING PAPER
VALUE
PENSIONS
CONTRIBUTION RATE
MACROECONOMICS
DEMOGRAPHIC CHANGE
ENVIRONMENTAL CONCERNS
UTILITY FUNCTION
SHARE OF CAPITAL
SHARES
EQUILIBRIUM VALUES
ELDERLY PEOPLE
ECONOMICS
POLICY
PRODUCTION FUNCTION
OUTPUT
MANAGEMENT
FUNCTIONAL FORMS
DEMOGRAPHIC CHANGES
THEORY
CONTRIBUTION SYSTEM
SECURITY
WARS
ANNUITY
INVESTMENT
WORLD POPULATION
SHARE
NUMBER OF CHILDREN
LOWER FERTILITY
FUNDED PENSIONS
POPULATION
SOCIAL SECURITY SYSTEM
RETIREMENT DECISIONS
PENSION COVERAGE
POLICY RESEARCH
FERTILITY
DEMOGRAPHIC
HEALTHY LIFE
CAPITAL INVESTMENT
RETIREMENT INCENTIVES
OUTCOMES
DECLINE IN FERTILITY
RETIREMENT SYSTEMS
DEFINED BENEFITS
LEVEL OF FERTILITY
DEVELOPMENT POLICY
BOOM GENERATIONS
FUTURE RESEARCH
Dedry, Antoine
Onder, Harun
Pestieau, Pierre
Aging, Social Security Design, and Capital Accumulation
relation Policy Research working paper,no. WPS 7418;
description 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.
format Working Paper
author Dedry, Antoine
Onder, Harun
Pestieau, Pierre
author_facet Dedry, Antoine
Onder, Harun
Pestieau, Pierre
author_sort Dedry, Antoine
title Aging, Social Security Design, and Capital Accumulation
title_short Aging, Social Security Design, and Capital Accumulation
title_full Aging, Social Security Design, and Capital Accumulation
title_fullStr Aging, Social Security Design, and Capital Accumulation
title_full_unstemmed Aging, Social Security Design, and Capital Accumulation
title_sort aging, social security design, and capital accumulation
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/09/25076835/aging-social-security-design-capital-accumulation
http://hdl.handle.net/10986/22840
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