Journal of Population Economics

, Volume 12, Issue 4, pp 625–640

Pay-as-you-go financed public pensions in a model of endogenous growth and fertility

  • Berthold U. Wigger
Original

Abstract.

Employing an overlapping generations endogenous growth model in which parents derive utility from having children and, additionally, expect children to support them in old age, this paper explores the interrelation between growth, fertility, and the size of pay-as-you-go financed public pensions. It is shown that small sized public pensions stimulate per capita income growth, but further increases in public pensions eventually reduce it. Fertility, on the other hand, falls by an increase in public pensions if they are either small or large. Medium sized public pensions, however, may stimulate fertility.

JEL classification: H55 J13 O41 
Key words: Public pensions endogenous growth fertility 

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Copyright information

© Springer-Verlag Berlin Heidelberg 1999

Authors and Affiliations

  • Berthold U. Wigger
    • 1
  1. 1.Department of Economics, University of Mannheim, A5, D-68131 Mannheim, Germany (Tel.: +49-621-292-5205; Fax: +49-621-292-5571; e-mail: wigger@econ.uni-mannheim.de)DE

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