Complex dynamics in an OLG model of neoclassical growth with endogenous retirement age and public pensions

2013 ◽  
Vol 14 (1) ◽  
pp. 829-841 ◽  
Author(s):  
Luciano Fanti ◽  
Luca Gori ◽  
Mauro Sodini
Keyword(s):  
Complex Dynamics ◽  
Public Pensions ◽  
Retirement Age ◽  
Olg Model ◽  
Endogenous Retirement ◽  
Neoclassical Growth

MORTALITY DECLINE, RETIREMENT AGE, AND AGGREGATE SAVINGS

2014 ◽  
Vol 20 (3) ◽  
pp. 715-736 ◽  
Author(s):  
Yanyou Chen ◽  
Sau-Him Paul Lau
Keyword(s):  
Life Expectancy ◽  
Overlapping Generations ◽  
Survival Function ◽  
Mortality Decline ◽  
Retirement Age ◽  
Overlapping Generations Model ◽  
Future Behavior ◽  
Life Expectancy Increase ◽  
One Year ◽  
Endogenous Retirement

We use an overlapping-generations model with endogenous retirement and saving to study the trade-off between saving and retirement age in response to mortality decline. When life expectancy increases by one year, people delay retirement by about four months. With this magnitude of delay in retirement age, the percentage of lifetime spent in working decreases, and people have to save more for postretirement years. Neither the pure form of sole adjustment through savings nor the proportionality hypothesis is consistent with our results, but the proportionality hypothesis is a better rule of thumb in predicting future behavior. Our choice of the modified Boucekkine et al. (2002) survival function gives a convenient one-to-one correspondence between life expectancy increase and a change in the survival parameter.

scholarly journals Voting on Pensions with Endogenous Retirement Age

2005 ◽  
Vol 12 (1) ◽  
pp. 7-28 ◽  
Author(s):  
Georges Casamatta ◽  
Helmuth Cremer ◽  
Pierre Pestieau
Keyword(s):  
Retirement Age ◽  
Endogenous Retirement

Rentenreform und Rentenzugangsentscheidung – Eine numerische Gleichgewichtsanalyse / Pension Reform and Endogenous Retirement – a Computable General Equilibrium Analysis

2009 ◽  
Vol 229 (4) ◽  
Author(s):  
Manuel Kallweit
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Early Retirement ◽  
Pension Reform ◽  
Policy Implications ◽  
Equilibrium Analysis ◽  
Retirement Age ◽  
Policy Reforms ◽  
Retirement Decision ◽  
Endogenous Retirement

SummaryThe paper presents a numerical general equilibrium model in which agents decide about their retirement age. In this context policy reforms like an increase of the normal retirement age, higher discounts for early retirement or the introduction of flat or minimum pensions are simulated. While future generations benefit from the first two reforms, they suffer from the latter. There are three central findings: First, higher discounts have a stronger effect on the retirement decision than an increase in normal retirement age. Second, the timing of retirement is significantly affected by an introduction of flat pensions. Third, models with an explicit retirement decision can lead to different policy implications compared to models in which retirement age is exogenous.

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