Public social security systems may provide diversification of risks to individuals' life-time income. Capturing that a pay-as-you-go program (paygo) may be considered as a "quasi-asset", we study the optimal size of the social security program as well as the optimal split between a funded part...

Different versions of pay-as-you-go public pension programs may have entirely different effects on the intergenerational distribution of income risk. If the pension benefit is a fixed proportion of previous income, a pay-as-you-go program increases the income risk of all generations. On the...

In order to stimulate labor market participation and improve the financial viability of the social security systems, many recent reform proposals in various OECD economies suggest to scale down the non-actuarial parts of the pension systems. These reforms have a flavour of increased efficiency...

We investigate induced retirement effects of the Norwegian early retirement program "AFP" and emphasizes effects caused by relocations of some individuals from disability pension and unemploy,emt to AFP. Our theoretical model predicts that AFP unembiguously induces more early retirement.

Population ageing implies that the large pay-as-you-go social security programs implemented in many OECD economies will run into severe financial problems. By means of a numerical overlapping generations model, this paper investigates the intergenerational welfare effects of a transition to...