Resource title

Intergenerational Fairness During Demographic Transition

Resource image

image for OpenScout resource :: Intergenerational Fairness During Demographic Transition

Resource description

Implementing a fairness component into a standard overlapping-generations model and allowing young individuals to vote on their own pension payments, we show that they adapt the pay-as-you-go pension scheme to future demographic changes. In particular, we explain why young generations cut their retirement benefits thus partially phasing out social security during a fertility decline. Carrying out a simulation, we furthermore calculate the costs of implementing fairness into utility. From the viewpoint of an individual, these costs are reduced by equalizing generational accounts. Hence, under certain conditions policy actions based on generational accounts may be compatible with intertemporal welfare maximization.

Resource author

Matthias Heidler, Jasmin H├Ącker

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22995

Resource license

Adapt according to the presented license agreement and reference the original author.