SFB 303 Discussion Paper No. A - 274

Author: Lang, Günther
Title: Intergenerational Contracts and Their Decomposition: A Comment
Abstract: Pay-as-you-go systems as means for public pension insurance seem to loose their attraction: economic growth is too slow to guarantee an internal rate of return which compares to the real rate of interest. Therefore, it would have been better never to introduce such systems. Unfortunately, a transition from a pay-as-you-go system to a capital funded pension scheme is shown to be not Pareto-improving.
JEL-Classification-Number: 111, 321, 915
Creation-Date: January 1990
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