TY - JOUR
T1 - Sharing high growth across generations
T2 - Pensions and demographic transition in China
AU - Song, Zheng
AU - Storesletten, Kjetil
AU - Wang, Yikai
AU - Zilibotti, Fabrizio
PY - 2015
Y1 - 2015
N2 - We analyze intergenerational redistribution in emerging economies with the aid of an overlapping generations model with endogenous labor supply. Growth is initially high but declines over time. A version of the model calibrated to China is used to analyze the welfare effects of alternative pension reforms. Although a reform of the current system is necessary to achieve financial sustainability, delaying its implementation implies large welfare gains for the (poorer) current generations, imposing only small costs on (richer) future generations. In contrast, a fully funded reform harms current generations, with small gains to future generations. (JEL E13, H55, J11, O11, O15, P24, P36).
AB - We analyze intergenerational redistribution in emerging economies with the aid of an overlapping generations model with endogenous labor supply. Growth is initially high but declines over time. A version of the model calibrated to China is used to analyze the welfare effects of alternative pension reforms. Although a reform of the current system is necessary to achieve financial sustainability, delaying its implementation implies large welfare gains for the (poorer) current generations, imposing only small costs on (richer) future generations. In contrast, a fully funded reform harms current generations, with small gains to future generations. (JEL E13, H55, J11, O11, O15, P24, P36).
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U2 - 10.1257/mac.20130322
DO - 10.1257/mac.20130322
M3 - Article
AN - SCOPUS:84928405264
SN - 1945-7707
VL - 7
SP - 1
EP - 39
JO - American Economic Journal: Macroeconomics
JF - American Economic Journal: Macroeconomics
IS - 2
ER -
