Skip to main content
Go to the home page of the European Commission (opens in new window)
English en
CORDIS - EU research results
CORDIS
Content archived on 2024-06-10

Social security, education and pareto efficiency

Objective



Research objectives and content
I am investigating the possibility of pareto-efficient conversions from a pay-as-you-go to a capital- reserve pension system. This is done by extending Samuelson's (1958) overlapping generations model (OLG) by one period. Agents live for three periods: a period of training, a full working period and retirement. Productivity growth is directly related to individual training decisions, capital accumulation is the engine of endogenous growth.
Both small open economies and closed economies, the latter being more interesting and more complex, as well as homogeneity and heterogeneity of agents will be taken into account. I will further look into the effect of demographic shocks (of the 'baby-bust' and 'baby-boom' type) on pareto-efficiency and how these shocks can best be smoothed. Keywords:social security, pareto efficiency, OLG, education, endogenous growth, heterogeneity
Training content (objective, benefit and expected impact)
My research can be seen as a continuation of Dosquier & Michel (1997). Given violation of the 'Aaron condition', I will show if and how it is possible to convert social security from a PAYG to a CR system pareto-efficiently. Calibrating the model, I will be able to simulate for various countries whether it might be worthwhile to change their social security system or not.
By taking education into account, I am closing a gap in the literature on the pareto-efficiency of social security systems.
Links with industry / industrial relevance (22)

Fields of science (EuroSciVoc)

Programme(s)

Topic(s)

Call for proposal

Data not available

Funding Scheme

RGI - Research grants (individual fellowships)

Coordinator

UNIVERSITE CATHOLIQUE DE LOUVAIN
EU contribution
No data
Address
34,Voie du Roman Pays 34
1348 LOUVAIN-LA-NEUVE
Belgium
Total cost
No data

Participants (1)