Theoretical Analysis: The Impact of the New Labor Pension System on Economic Growth

• Main Authors: Yen-Chen Wu, 吳彥成
• Other Authors: 王銘正
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/71204830718233567724

碩士 === 國立中央大學 === 經濟學研究所 === 95 === This paper develops a three-period overlapping generations model to study the impact of the fully-funded social security system on economic growth. The engine of growth in this model is human capital accumulation. We assume that the credit market is perfect. We find some interesting results. The fully-funded system has no influence on the economic growth, if the typical household just earns the interest form the pension fund when he retired. However, if the typical household not only earns the interest form the pension fund but also obtains interest subsidy from government when he retired, the fully-funded system can exert an influence on the economic growth. However, the direction of the influence depends upon whether the balanced economic growth rate is higher or lower than the real interest rate. If the balanced economic growth rate is higher than the real interest rate, then the higher pension saving rate or the subsidy rate, the higher the economic growth rate. If the balanced economic growth rate is lower than the real interest rate, then the higher pension saving rate or the subsidy rate, the lower the economic growth rate.