scholarly journals Complementary funded pensions and economic growth: Theoretical and empirical evidence using an overlapping generations model applied to the case of Tunisia

2021 ◽  
Vol 66 (231) ◽  
pp. 59-97
Author(s):  
Houyem Chekki Cherni
Keyword(s):  
Economic Growth ◽  
Computable General Equilibrium ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Pension Reform ◽  
Computable General Equilibrium Model ◽  
Pension Scheme ◽  
Overlapping Generations Model ◽  
Funded Pensions ◽  
Theoretical Results

This paper presents a prospective analysis to guide effective pension reform. Using an overlapping generations model with differing returns on free savings and compulsory returns on funded pensions, we put into perspective the results largely supported in the economic literature that assume that replacing a pay-as-you-go pension scheme by funded plans boosts economic growth. We show that this reform is not necessarily synonymous with economic growth due to a crowding-out effect. Our contribution is not limited to theoretical results: we also assess the impacts empirically. Thus, we extend the theoretical model to take into account several periods and 55 generations. Simulation results, using a dynamic overlapping generations computable general equilibrium model calibrated for the Tunisian case, indicate that whether pension reform promotes capital accumulation and economic growth depends on the rate of return on funded pension savings relative to free savings.

EXPECTATIONS, FORECASTING, AND PERFECT FORESIGHT

1999 ◽  
Vol 3 (2) ◽  
pp. 167-186 ◽  
Author(s):  
Volker Böhm ◽  
Jan Wenzelburger
Keyword(s):  
Economic Growth ◽  
Overlapping Generations ◽  
Sufficient Conditions ◽  
General Linear Model ◽  
Overlapping Generations Model ◽  
Savings Behavior ◽  
Perfect Foresight ◽  
Expectations Formation ◽  
Necessary And Sufficient ◽  
Dominant Influence

The paper studies the nature of expectations formation rules for deterministic economic laws with an expectations feedback within the framework of dynamical systems theory. In such systems, the expectations formation rules, called predictors, have a dominant influence. The concept of a perfect predictor, which generates perfect-foresight orbits, is proposed and analyzed. Necessary and sufficient conditions are given for which local as well as global perfect foresight is possible. The concept is illustrated for the general linear model as well as for models of the cobweb type. For the standard overlapping generations model of economic growth, the existence of perfect predictions depends strongly on the savings behavior of the agents and on the technology.

scholarly journals ENVIRONMENTAL POLICY, EDUCATION AND GROWTH: A REAPPRAISAL WHEN LIFETIME IS FINITE

2011 ◽  
Vol 16 (5) ◽  
pp. 661-685 ◽  
Author(s):  
Xavier Pautrel
Keyword(s):  
Human Capital ◽  
Environmental Policy ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Monetary Economics ◽  
Physical Capital ◽  
Positive Influence ◽  
Overlapping Generations Model ◽  
Final Output ◽  
Source Of Pollution

When finite lifetime is introduced in a Lucas [Journal of Monetary Economics 22 (1988), 3–42] growth model where the source of pollution is physical capital, the environmental policy may enhance the growth rate of a market economy, whereas pollution does not influence educational activities, labor supply is not elastic, and human capital does not enter the utility function. The result arises from the generational turnover effect due to finite lifetime and it remains valid under conditions when the education sector uses final output as well as time to accumulate human capital. This article also demonstrates that ageing reduces the positive influence of environmental policy when growth is driven by human capital accumulation à la Lucas in the overlapping-generations model of Yaari [Review of Economic Studies 32 (1965), 137–150] and Blanchard [Journal of Political Economy 93 (1985), 223–247].

scholarly journals External Habits Formation and the Environment

2021 ◽  
Vol 67 (1) ◽  
pp. 1-12
Author(s):  
Fatma Safi
Keyword(s):  
Utility Function ◽  
Environmental Quality ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Competitive Equilibrium ◽  
Cohort Size ◽  
Overlapping Generations Model ◽  
The Impact

Abstract The present paper presents a standard overlapping generations model with external habits formation and environmental quality in the utility function. Our main objective is to study the impact of external habits on capital accumulation and environmental quality on the intertemporal competitive equilibrium. We notice that striving for status leads to environment worsening and capital increasing when the cohort size is large.

scholarly journals Sustainable development in an aging economy

2002 ◽  
Vol 7 (1) ◽  
pp. 9-22 ◽  
Author(s):  
Tetsuo Ono ◽  
Yasuo Maeda
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Environmental Policy ◽  
Overlapping Generations ◽  
Population Aging ◽  
Overlapping Generations Model

In this paper, we analyze the effects of population aging on economic growth and the environment in a two-period overlapping generations model of growth, aging, and the environment. We show that aging may be beneficial to economic growth and the environment under perfect annuitisation, while possibly harmful under imperfect annuitisation. We also discuss the implications of our results for environmental policy in an aging economy.

General Equilibrium Analysis of the Effects of Technological Progress for Energy Intensity and Carbon Dioxide Emissions in China

2011 ◽  
Vol 347-353 ◽  
pp. 1093-1097
Author(s):  
Ai Jun Li ◽  
Zheng Li
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Carbon Dioxide Emissions ◽  
Technological Progress ◽  
Energy Use ◽  
Energy Intensity ◽  
Computable General Equilibrium Model ◽  
Equilibrium Analysis

This study analyzes the effects of technological progress for energy intensity and energy use related carbon dioxide emissions during urbanization in China by a dynamic computable general equilibrium model. The parameters about technological progress and urbanization are all exogenously given. The impacts of technological progress on economic growth, energy intensity and carbon dioxide emissions during period from 2002 to 2030 are examined. Simulation results show that gradually pushing energy efficiency related technologies through appropriate policy incentives is the key to realize low-carbonized development while promoting economic growth in China.

Capital Income Taxation, Economic Growth and Heterogeneity in the Motivation to Give

2012 ◽  
Vol 13 (3) ◽  
pp. 291-306
Author(s):  
Lars Kunze
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Overlapping Generations ◽  
Income Taxation ◽  
Capital Income ◽  
Capital Income Taxation ◽  
Overlapping Generations Model ◽  
Tax Rate ◽  
Motivation To Give ◽  
The Relationship

Abstract This study provides a comprehensive analysis of the relationship between capital income taxation and economic growth within an overlapping generations model when individuals may bequeath wealth. The altruistic concern is modeled as a synthesis of joy-of-giving and family altruism so that individuals may derive utility from the amount of bequest itself and by providing children with a disposable income later on in life. Using this framework, it is shown that, in contrast to the existing literature, increasing the capital income tax rate may well enhance growth under operative bequests.

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