Work

Partially funded social security and growth

Year: 2024

Type: article

Abstract: This paper investigates the relationship between economic growth and the degree of fundedness of a social security system in an overlapping generations model with family altruism. It is shown that the relationship between the degree of fundedness and economic growth is inverted U‐shaped so that a gradual increase in funding may harm growth if bequests are not operative within the family. Our findings put some caution on the conventional view that a higher degree of funded social security is beneficial for growth.

Source: Metroeconomica

DOI: 10.1111/meca.12484

Authors: Carlos Bethencourt, Lars Kunze, Fernando Perera‐Tallo

Institutions: Universidad de La Laguna, TU Dortmund University

Language: English

Topic: Economic Policies and Impacts

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,190