Different Social Security Systems and Their Impact on Savings Rates and Economic Growth

Different Social Security Systems and Their Impact on Savings Rates and Economic Growth

Peng XiChen Zhongchang Yu Jiajia 

School of Public Affairs, Chongqing University China, No. 174 Shazhengjie, Shapingba, Chongqing

School of Public Affairs, Chongqing University China, No. 174 Shazhengjie, Shapingba, Chongqing

Chongqing Jianzhu College China, No. 8 Bolin, Nanan, Chongqing

Corresponding Author Email: 
pengxi1985@sina.com
Page: 
75-86
|
DOI: 
https://doi.org/10.18280/ama_a.540106
Received: 
15 March 2017
|
Accepted: 
15 April 2017
|
Published: 
30 March 2017
| Citation

OPEN ACCESS

Abstract: 

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.

Keywords: 

Funded pension system; PAYG pension System; OLG model; economic growth

1. Introduction
2. A Simple Model
3. Equilibrium Solution of model
4. Conclusion
  References

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