We consider an overlapping generations model of small open economy with Harrod neutral technical progress. If the interest rate is less that the growth rate, intergenerational public transfers increase welfare of some generations and reduce welfare of others.

It is generally accepted that moving from an unfunded to a funded social security system implies a welfare loss for the trasition generation, that is the generation that has to pay twice: first, saving for this own retirement and second, contributing to the pensions of the then retired...

We consider an overlapping generations model with endogenous labor supply. Individuals live for two periods and have different skills. We state equivalence properties of different transfer policies, assuming the government cannot identify individuals and has a limited range of instruments that...