How Pension Systems Influence Fertility

Public Debt, Child Allowances and Pension Benefits with Endogenous Fertility

The public debt stock in some economically developed countries continues to increase because of a lack of tax revenues and the concomitant burdens of social security. Many of those countries suffer from lower birth rates and consequently, have fewer children. Child allowances might be an effective way to increase fertility, leading to higher future tax revenues through an increase in the number...

Fertility, human capital accumulation, and the pension system

This paper provides a unified treatment of externalities associated with fertility and human capital accumulation as they relate to pension systems. It considers as overlapping generations model in which every generation consists of high earners and low earners with the proportion of types being determined endogenously. The number of children is deterministically chosen but the children’s futur...

How Should Public Pension Plans Invest?

How public pension plan assets should be invested is an important but unsettled question. Alicia H. Munnell and Mauricio Soto (2007) find that the share of state and local (S&L) plan assets held in equities has grown over time, largely in parallel with private sector practices, from an average of about 40 percent in the late 1980s to about 70 percent in 2007. This exposure led to a loss of an e...

Pension Systems and Aggregate Shocks

Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W First Quarter 2003 T o some analysts the prospective imbalances between pay-as-you-go pension system benefits and the tax base present a great economic challenge in the decades to come.1 It is currently estimated that the U.S. Social Security Trust Funds will run out of money in 2041, after which either benefit cuts or major tax hikes ...

Actuarial-based Public Pension Systems