Public Pensions and Economic Growth

This book studies the normative and positive ramifications of public pensionpolicies in a growing economy. It analyzes the impact of an unfunded publicpension s... » 

This book studies the normative and positive ramifications of public pensionpolicies in a growing economy. It analyzes the impact of an unfunded publicpension scheme on aggregate productivity growth and efficiency it considersthe political forces behind public pension legislation and it develops anddiscusses elements of public pension design and reform. The book emphasizes theendogenous growth paradigm for an understanding of the dynamic impact ofintergenerational transfers inherent in an unfunded public pension scheme. Ituncovers an allocative role of intergenerational transfers which is exclusivelylinked to the possibility of endogenously evolving economic growth. Theendogenous growth approach also allows to identify unfunded public pensions asa source of a conflict between current and future generations. This conflictshapes private oldage security considerations as well as the process of publicpension legislation. TOCIntroduction. Public Pensions and Economic GrowthThe Basic Framework. The Allocative Role of Intergenerational Transfers inEndogenous Growth Economies. Public versus Private IntergenerationalTransfers. The Familiy as an Oldage Security Device. Summary. «