This paper studies the impact of variations of a pay-as-you-go pension system on welfare in a stochastic overlapping …, for a stationary population, any reduction of contribution rates once and for all leads to a long-run welfare improvement … generated retirement system keeping the welfare losses of current retirees sufficiently small. An unfavorable demographic change …

shows how the current tax, welfare, and pension systems create disincentives to work among these groups. The paper finds …

We evaluate the welfare and macroeconomic effects of increasing the retirement age in the context of population aging … is universally welfare enhancing for all living and future cohorts, regardless of the pension system. Quantitatively … our findings in a population with lower pace of aging due to higher fertility. Finally, we show scope for further welfare …

absence of imperfections in all cases welfare is increased, when the generosity of the PAYG system is maintained and when tax …