?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F1647%2F&rft.title=Social+security+in+a+two-country+model+with+myopic+agents&rft.creator=Wen%2C+Xue&rft.subject=HB+Economic+Theory&rft.subject=HM+Sociology&rft.description=In+a+standard+two-period+overlapping+generations+model%2C+two+symmetric+countries+are+involved%2C+each+with+a+PAYG+pension+system.+This+paper+focuses+on+how+myopic+households+may+affect+the+optimal+pension+policy+under+both+non-cooperative+and+cooperative+schemes.+It+distinguish+between+the+cases+when+the+pension+authority+considers+the+welfare+function+with+only+the+current+welfare+of+the+living+generations+and+when+they+consider+the+lifetime+welfare+of+the+living+generations.+Assuming+perfect+international+capital+mobility%2C+international+cooperation+among+national+pension+authorities+boosts+capital+accumulation+when+the+international+authority+only+considers+the+current+welfare+of+living+generations%2C+even+though+the+presence+of+myopic+individuals+lowers+the+welfare+gain+from+cooperation.+When+the+lifetime+welfare+is+considered%2C+international+cooperation+may+depress+capital+accumulation%2C+however%2C+with+enough+myopes+in+the+economy%2C+international+cooperation+again+boosts+capital+accumulation.+The+size+of+the+PAYG+system+increases+with+the+number+of+myopic+individuals+in+the+cooperative+equilibrium.+In+the+non-cooperative+equilibrium%2C+this+relationship+only+holds+when+each+national+authority+considers+lifetime+wellbeing+of+the+living+generation.&rft.date=2012&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.identifier=++Wen%2C+Xue++Social+security+in+a+two-country+model+with+myopic+agents.++Working+Paper++%23+%2F2012++++++++(Unpublished)+++