We analyse the steady-state equilibrium dynamics of the conventional overlapping generations economy à la Diamond (1965) with pay-as-you-go public pensions and second period of life divided between working and retirement time in a proportion dependent on the individual health status (a rather...

This paper analyses the dynamics of a simple overlapping generations economy with endogenous longevity, endogenous fertility and private transfers from children to parents. In this context, it is shown that both the public provision of health care services, which determines the individual length...

We examine how subsidy policies to support child-rearing of households affect the fertility rate in a textbook OLG model extended to account for a labour market imperfection (e.g., a minimum wage or a monopolistic union's wage) as well as endogenous fertility. It is shown that increasing the...

The passage from the Malthusian Regime to the Modern Regime has been theoretically investigated only in recent times and the understanding of this process is still incomplete. This paper develops a neoclassical OLG model of neoclassical growth which embodies a stylised fact emerged in the second...

Since recent studies have argued that a pro-natalist effect could be obtained by introducing fertility-related pension systems for contrasting, especially in European countries, the plague of below-replacement fertility and the resulting problem of financing the widespread pay-as-you-go (PAYG)...

This paper extends the growth cycle model a la Goodwin (1967) by introducing the risk-averse behaviour of the agents and a consequent positive correlation between wages and profitability. This extension is motivated by the impressive evidence on the joint role played by aggregate unemployment...

Recently Fanti and Gori (2008) showed – in the basic overlapping generations (OLG) model of neoclassical growth with exogenous fertility (Diamond, 1965) – that a positive relationship between longevity and pay-as-you-go (PAYG) pensions may exist independently of the size of the contribution...

In this paper we show that, when endogenous fertility choices are accounted for, the traditional rule provided by Diamond (1965) should be amended in order to effectively implement the first best allocation of an OLG economy, even in the presence a non distortionary tax for financing national...