eprintid: 2949
rev_number: 19
eprint_status: archive
userid: 52
dir: disk0/00/00/29/49
datestamp: 2015-12-02 08:19:47
lastmod: 2016-02-26 13:40:07
status_changed: 2015-12-02 08:19:52
type: conference_item
metadata_visibility: show
creators_name: Wen, Xue
creators_name: Pammolli, Fabio
creators_name: Gnecco, Giorgio
creators_id: xue.wen@imtlucca.it
creators_id: f.pammolli@imtlucca.it
creators_id: giorgio.gnecco@imtlucca.it
title: Labor Supply Distortion and Capital Accumulation when Public Pension Systems Differ in an Aging Economy
ispublished: pub
subjects: HJ
divisions: EIC
full_text_status: public
pres_type: paper
keywords: Keywords: Labor Supply, Capital Accumulation, Pension, Aging Economy. JEL Codes: H55, H21, D91
abstract: In the context of an aging economy, the question addressed in this paper is: since pension systems differ in the funding methods - pay-as-you-go (PAYG) or fully funded - and payment schemes - Beveridgean or Bismarckian - under which setting can a sustainable public pension system provide both intergenerational and intragenerational redistribution, reduce labour supply distortion, and lead to a higher physical capital accumulation? Considering a series of partial reforms within a PAYG pension system to deal with aging, the results of our analysis show that commonly used policy actions distort labor supply and depress the capital market, thus, reducing the tax base and deteriorating the growth of the economy. As a consequence, the PAYG pension system does not appear to be reformable from inside, and a (partial) transition to a funded system is necessary.Moreover, we show that, within a fully funded scheme, a transition from a pure Beveridgean system to a pure Bismarckian system substantially improves the labor supply incentives, while it tends to depress physical capital accumulation. Hence, a mix between Beveridge and Bismarck substantiates a good compromise to balance the trade-off between equity and efficiency
date: 2015-07
date_type: completed
event_title: The 2015 Annual Conference of the Association for Public Economic Theory
event_location: Luxembourg
event_dates: July 2nd-4th, 2015
event_type: conference
refereed: TRUE
book_title: Proceedings of the 16th Annual Conference of Public Economic Theory
official_url: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2664175
related_url_url: https://editorialexpress.com/conference/PET15/program/PET15.html#103
related_url_type: org
citation:   Wen, Xue and Pammolli, Fabio and Gnecco, Giorgio  Labor Supply Distortion and Capital Accumulation when Public Pension Systems Differ in an Aging Economy.  In: The 2015 Annual Conference of the Association for Public Economic Theory, July 2nd-4th, 2015, Luxembourg         (2015)  
document_url: http://eprints.imtlucca.it/2949/1/PET15-402.pdf