Intergenerational Fairness During Demographic Transition

Arbeitspapier

Implementing a fairness component into a standard overlapping-generations model and allowing young individuals to vote on their own pension payments, we show that they adapt the pay-as-you-go pension scheme to future demographic changes. In particular, we explain why young generations cut their retirement benefits thus partially phasing out social security during a fertility decline. Carrying out a simulation, we furthermore calculate the costs of implementing fairness into utility. From the viewpoint of an individual, these costs are reduced by equalizing generational accounts. Hence, under certain conditions policy actions based on generational accounts may be compatible with intertemporal welfare maximization.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeiträge ; No. 121

Classification and Topics

• Classification: Wirtschaft ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Social Security and Public Pensions
• Subject: intergenerational fairness ; social security ; demography ; Generationenbeziehungen ; Gerechtigkeit ; Soziale Sicherung ; Overlapping Generations ; Public Choice ; Umlageverfahren ; Intergenerative Belastungsrechnung ; Zeitpräferenz ; Alternde Bevölkerung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heidler, Matthias ; Häcker, Jasmin
• Event: Veröffentlichung
• (who): Albert-Ludwigs-Universität Freiburg, Institut für Finanzwissenschaft
• (where): Freiburg i. Br.
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/22995
• URN: urn:nbn:de:bsz:25-opus-18548
• Last update: 10.03.2025, 11:43 AM CET