This paper analyses a model of overlapping generations in which agents who do not participate in th elabor market are unable to borrow. Thus an increase in a fully funded pension raises aggregate savings even with a fixed participation rate since private savings are not crowded out one-for-one....

A switch from a Bismarckian (BIS) earnings-related to a Beveridgean (BRV) flat rate pay-as-you-go (PAYG) pension scheme will raise the variance of personal replacement ratios and, hence, the variance of individual interest-saving elasticities. A monopolistic financial sector can then make...

If households have finite lives, the effect of imperfect competition in the financial sector on economic growth depends also on how its profits are returned. The return may be exogenous though fiscal transfers to the young and/or the old or endogenous through dividend payments to a subset of old...