The paper evaluates the theoretical literature on public pension schemes. First, the terms pay-as-you-go and capital reserve are made precise. These two systems are then compared, followed by a consideration of their efficiency properties. Thereafter conversion policies are discussed.

The authors outline a public pension reform where contribution rates are reduced to zero over a very long horizon and in a Pareto-improving fashion.

The paper evaluates the theoretical literature on public pension schemes. First, the terms pay-as-you-go and capital reserve are made precise. These two systems are then compared, followed by a consideration of their efficiency properties. Thereafter conversion policies are discussed.

The article demonstrates that it is possible to convert a pay-as-you-go pension scheme into a capital reserve pension scheme in a Pareto-improving fashion and in finite time.

The book compares funded and unfunded pension schemes. This is done within a simple overlapping generations framework.

The book compares funded and unfunded pension schemes. This is done within a simple overlapping generations framework.

The authors outline a public pension reform where contribution rates are reduced to zero over a very long horizon and in a Pareto-improving fashion.

The article demonstrates that it is possible to convert a pay-as-you-go pension scheme into a capital reserve pension scheme in a Pareto-improving fashion and in finite time.