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Pecchenino, Rowena A. (1997) The Effects of Annuities, Bequests, and Aging in an Overlapping Generatiions Model of Endogenous Growth. Economic Journal, 107. pp. 26-47. ISSN 0013-0133
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Abstract
We examine the effects of introducing actuarially fair annuity markets into an overlapping
generations model of endogenous growth. The complete annuitisation of agents' wealth is not, in
general, dynamically optimal; the degree of annuitisation that is dynamically optimal depends
nonmonotonically on the expected length of retirement and on the pay-as-you-go social security tax
rate. The government has an incentive to restrict the availability of actuarially fair annuities
contracts, and can often move the economy from a pay-as-you-go to a fully-funded social security
system via voluntary contributions to a government sponsored, actuarially fair pension today
accompanied by reductions in social security taxes tomorrow.
| Item Type: | Article |
|---|---|
| Keywords: | Annuities; Bequests; Overlapping Generations; Endogenous Growth; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 8516 |
| Depositing User: | Prof. Rowena Pecchenino |
| Date Deposited: | 26 Jul 2017 09:52 |
| Journal or Publication Title: | Economic Journal |
| Publisher: | Wiley |
| Refereed: | Yes |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/8516 |
| Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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