The effects of financing rules in pay-as-you-go pension systems on the life and the business cycle
- I study the impacts of financing rules for financial surpluses in pay-as-you-go pension systems on the business cycle and the life cycle in a dynamic stochastic large-scale overlapping generations model, where households take the inter-temporal links between contributions and pension benefits explicitly into account. The results point out that sluggish adjustments of contribution rates that are implemented by adjusting a financial buffer stock both stabilize an economy and decrease the volatility of life-time utilities of retirees and workers close to retirement. Such a policy allows these households a better hedge against macroeconomic shocks over the business cycle. Moreover, I show that the impacts of higher fluctuations of aggregate variables on the volatility of individual lifetime utilities can rather be negligible.
| Author: | Christian ScharrerORCiDGND |
|---|---|
| URN: | urn:nbn:de:bvb:384-opus4-1026291 |
| Frontdoor URL | https://opus.bibliothek.uni-augsburg.de/opus4/102629 |
| Series (Serial Number): | Volkswirtschaftliche Diskussionsreihe (340) |
| Publisher: | Volkswirtschaftliches Institut, Universität Augsburg |
| Place of publication: | Augsburg |
| Type: | Working Paper |
| Language: | English |
| Date of Publication (online): | 2023/03/09 |
| Year of first Publication: | 2020 |
| Publishing Institution: | Universität Augsburg |
| Release Date: | 2023/03/09 |
| Tag: | JEL: H55, E21, E30 |
| Page Number: | 18 |
| Institutes: | Wirtschaftswissenschaftliche Fakultät |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre | |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Lehrstuhl für Finanzwissenschaft | |
| Schriftenreihen / Volkswirtschaftliche Diskussionsreihe | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Journals: | Volkswirtschaftliche Diskussionsreihe |
| Licence (German): |  Deutsches Urheberrecht |
