Gori, Luca; Fanti, Luciano - In: Economics Bulletin 10 (2008) 2, pp. 1-8
In this paper we study the effects of an increasing longevity on the balanced pay-as-you-go pension budget in the basic overlapping generations model of growth (Diamond, 1965). It is shown that, when the capital's share in production is sufficiently high, the higher longevity the higher pension...