Life Expectancy, Social Security and Long-Run Economic Performance
Journal
經濟論文叢刊
Journal Volume
35
Journal Issue
1
Pages
1-31
Date Issued
2007
Author(s)
Abstract
This paper develops a three-period overlapping generations model to study the impacts of life expectancy, retirement and a social security system (a fully-funded system and a pay-as-you-go system) on long-run economic performance. We assume that agents can only live safely for the first two periods and face uncertainty as to whether they will survive to the third period. We find that an increase in life expectancy will be beneficial to the long-run output per head. However, delaying retirement or increasing the tax burden of young agents under the pay-as-you-go system will be harmful to the long-run output per head. Under a fully-funded system, the Ricardian equivalence will hold if the capital market is perfect. If the capital market is imperfect, increasing the tax rate will increase the long-run output per head.
Subjects
預期生命長度
疊代模型
社會安全制度
life expectancy
an overlapping generations model
social security system
SDGs
Type
journal article