Year: 1989
Type: article
Abstract: When a pay-as-you-go financed public pension system is replaced by a funded system or by private savings, it is generally impossible to compensate the pensioners in the transition generation for the loss incurred without making at least one later generation worse off. This is shown in a standard one-sector overlapping-generations model, both for a "small" open and for a closed economy. Our findings imply that the choice between financing methods for social security can not be reduced to the intergenerational Pareto-criterion but necessarily involves distributional conflicts among generations.
Source: KOPS (University of Konstanz)
Author: Friedrich Breyer
Language: German
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1588533151