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Social security in a general equilibrium model with endogenous government behavior
Journal of Population Economics
|May 1, 1991
Summary
An aging population significantly impacts government policies, social security, and intergenerational equity. Adjusting retirement age and capital endowments can mitigate economic and political challenges.
Area of Science:
- Economics
- Political Science
- Demography
Background:
- Global populations are aging, presenting complex economic and political challenges.
- Existing models often lack endogenous policy analysis for aging societies.
Purpose of the Study:
- To analyze the economic and political consequences of an aging population.
- To investigate the impact of policy decisions on aging demographics.
- To examine effects of retirement age and capital endowment changes.
Main Methods:
- Utilized a general equilibrium model.
- Incorporated endogenous government policy decision-making.
- Analyzed effects on social security, public goods, private output, and intergenerational conflict.
Main Results:
- Aging populations strain social security expenditures and benefits.
- Public goods and services provision are affected by demographic shifts.
- Intergenerational conflicts may arise due to resource allocation.
Conclusions:
- Policy adjustments, such as changes in retirement age, are crucial for managing aging populations.
- Understanding political influence shifts and social motivations is key to effective policy.
- Proactive policy interventions can address the economic and political ramifications of aging.
Keywords:
Age Distribution--changesAge FactorsDemographic AgingDemographic FactorsDemographic ImpactEconomic FactorsEconomic ModelGovernmentIntergenerational TransfersMicroeconomic FactorsModels, TheoreticalOld Age SecurityPolicyPolitical FactorsPopulationPopulation CharacteristicsPopulation DynamicsResearch MethodologyWorldRelated Concept Videos
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