Department of Economics and Business Economics

Unfunded pensions and endogenous labor supply

Research output: Working paper/Preprint Working paperResearch


  • Wp09 16

    Final published version, 318 KB, PDF document

  • School of Economics and Management
A classic result in dynamic public economics, dating back to Aaron (1966) and Samuelson (1975), states that there is no welfare rationale for PAYG pensions in a dynamically-efficient neoclassical economy with exogenous labor supply.
This paper argues that this result, under the fairly-mild restriction that the old be no less risk-averse than the young, extends to a neoclassical economy with endogenous labor supply.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages26
Publication statusPublished - 2009

    Research areas

  • pay-as-you-go, social security, endogenous labor supply, dynamic efficiency

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