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Sharing High Growth across Generations: Pensions and Demographic Transition in China

Song, Zheng and Storesletten, Kjetil and Wang, Yikai and Zilibotti, Fabrizio (2015) 'Sharing High Growth across Generations: Pensions and Demographic Transition in China.' American Economic Journal: Macroeconomics, 7 (2). 1 - 39. ISSN 1945-0443

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Abstract

We analyze intergenerational redistribution in emerging economies with the aid of an overlapping generations model with endogenous labor supply. Growth is initially high but declines over time. A version of the model calibrated to China is used to analyze the welfare effects of alternative pension reforms. Although a reform of the current system is necessary to achieve financial sustainability, delaying its implementation implies large welfare gains for the (poorer) current generations, imposing only small costs on (richer) future generations. In contrast, a fully funded reform harms current generations, with small gains to future generations.

Item Type: Article
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Elements
Date Deposited: 22 Oct 2020 15:30
Last Modified: 22 Oct 2020 15:30
URI: http://repository.essex.ac.uk/id/eprint/28942

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