This paper compared with different social security system, Pay-as-you-go (PAYG) and Funded pension system, and they have different degrees of impact on savings rates and economic growth in an overlapping generations model by using discrete optimization method and the Bellman equation, solving the value function makes it possible to obtain its optimal solution.
Funded pension system; PAYG pension System; OLG model; economic growth
1. O.P. Attanasio, A. Brugiavini, Social security and households' saving, 2003, Quarterly Journal of Economics, vol. 118, pp. 1075-1119.
2. D.A. Austin, Social Security as an Economic Stabilization Program, 1999, Journal of Macroeconomics, vol. 21, no. 2, pp. 309-333.
3. G.S. Becker, N. Tomes, Child Endowments and the Quantity and Quality of Children, 1976, Nber Working Papers, vol. 84, no. 4, pp. S143-S162.
4. G.S. Becker, R. Tamura, Human Capital, Fertility and Economic Growth, 1990, National Bureau of Economic Research, Inc.
5. J.B. Burbidge, Social security and savings plans in overlapping-generations models. 1983. Journal of Public Economics, vol. 21, no. 1, pp. 79-92.
6. R.A. Cerda, On social security financial crisis, 2005, Journal of Population Economics, vol. 18, no. 3, pp. 509-517.
7. R. Crawford, R. Disney, Reform of police pensions in England and Wales, 2014, Journal of Public Economics, vol. 116, pp. 62-72.
8. H. Cremer, J.M. Lozachmeur, P. Pestieau, Social Security, Retirement Age and Optimal Income Taxation, 2002, Journal of Public Economics, vol. 88, no. 11, pp. 2259-2281.
9. P. Diamond, J. Geanakoplos, Social Security Investment in Equities, 2003, American Economic Review, vol. 93, no. 4, pp. 1047-1074.
10. P.A. Diamond, National Debt in a Neoclassical Growth Model, 1965, American Economic Review, vol. 55, no. 5, pp. 1126-1150.
11. P. Dupas, J. Robinson, Why Don't the Poor Save More? Evidence from Health Savings Experiments. 2011. Jonathan Robinson.
12. M. Feldstein, Social Security and Saving: The Extended Life Cycle Theory, 1976, American Economic Review, vol. 66, no. 2, pp. 77-86.
13. V Galasso, The US Social Security System: What Does Political Sustainability Imply? 1999., Review of Economic Dynamics, vol. 2, no. 3, pp. 698-730.
14. T. Laun, J. Wallenius, A life cycle model of health and retirement: The case of Swedish pension reform, 2013, Journal of Public Economics, vol. 127, pp. 127-136.
15. T. Oshio, Social security and trust fund management, 2008. J. Japanese int. Economics.
16. R.J. Shiller, The Life-Cycle Personal Accounts Proposal for Social Security: An Evaluation. 2005. Paper presented at the Journal of Policy Modeling.
17. S.J. Wei, X. Zhang, The Competitive Saving Motive: Evidence From Rising Sex Ratios and Savings Rates in China, 2011, Journal of Political Economy, vol. 119, no. 3, pp. 511-564.
18. R.J. Willis, Public and private intergenerational transfers economic growth and demographic transition, 1989, Paper presented at the Conference on Economic Development & Social Welfare in Taiwan.
19. J.B. Williamson, C. Deitelbaum, Social Security Reform: Does Partial Privatization Make Sense for China, 2006, Journal of Aging Studies, vol. 19, no. 2, pp. 257-271.
20. J. Zhang, Social security and endogenous growth, 1995, Journal of Public Economics, vol. 58, no. 2, pp. 185–213.
21. J. Zhang, J. Zhang, Long-run effects of unfunded social security with earnings-dependent benefits, 2003, Journal of Economic Dynamics & Control, vol. 28, no. 3, pp. 617-641.