Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies.
This paper examines the risk-sharing properties of two major social security systems, the Pay-as-You-Go (PAYGO) Defined Benefit (DB) systems and the pre-funding systems, in both closed and open economies. An Overlapping Generations (OLG) model is constructed to formulate consumer’s saving and consum...
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/48867 |
| _version_ | 1811682772503232512 |
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| author | Wang, Jingyi. Ye, Honghai. |
| author2 | School of Humanities and Social Sciences |
| author_facet | School of Humanities and Social Sciences Wang, Jingyi. Ye, Honghai. |
| author_sort | Wang, Jingyi. |
| collection | NTU |
| description | This paper examines the risk-sharing properties of two major social security systems, the Pay-as-You-Go (PAYGO) Defined Benefit (DB) systems and the pre-funding systems, in both closed and open economies. An Overlapping Generations (OLG) model is constructed to formulate consumer’s saving and consumption behaviors and examine the risk-sharing properties between two consecutive generations in a closed economy. Following which, we extend our analysis into an open economy context by introducing a static external economy.
Our findings indicate that, in a closed economy, pre-funding systems generally perform poorly in demographic risk-sharing over generations. However, the risk-sharing properties in PAYGO systems are highly subjected to government policies. Moreover, an unanticipated demographic shock could possibly improve the intergenerational risk-sharing in pre-funding systems. Lastly, both social security systems function better in sharing demographic risks across generations in open economies than in closed economies. |
| first_indexed | 2024-10-01T04:02:09Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/48867 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:02:09Z |
| publishDate | 2012 |
| record_format | dspace |
| spelling | ntu-10356/488672019-12-10T13:56:58Z Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. Wang, Jingyi. Ye, Honghai. School of Humanities and Social Sciences Walter Edgar Theseira DRNTU::Social sciences This paper examines the risk-sharing properties of two major social security systems, the Pay-as-You-Go (PAYGO) Defined Benefit (DB) systems and the pre-funding systems, in both closed and open economies. An Overlapping Generations (OLG) model is constructed to formulate consumer’s saving and consumption behaviors and examine the risk-sharing properties between two consecutive generations in a closed economy. Following which, we extend our analysis into an open economy context by introducing a static external economy. Our findings indicate that, in a closed economy, pre-funding systems generally perform poorly in demographic risk-sharing over generations. However, the risk-sharing properties in PAYGO systems are highly subjected to government policies. Moreover, an unanticipated demographic shock could possibly improve the intergenerational risk-sharing in pre-funding systems. Lastly, both social security systems function better in sharing demographic risks across generations in open economies than in closed economies. Bachelor of Arts 2012-05-10T04:47:27Z 2012-05-10T04:47:27Z 2012 2012 Final Year Project (FYP) http://hdl.handle.net/10356/48867 en Nanyang Technological University 41 p. application/pdf |
| spellingShingle | DRNTU::Social sciences Wang, Jingyi. Ye, Honghai. Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. |
| title | Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. |
| title_full | Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. |
| title_fullStr | Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. |
| title_full_unstemmed | Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. |
| title_short | Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies. |
| title_sort | intergenerational demographic risk sharing properties of current social security systems in closed economies and open economies |
| topic | DRNTU::Social sciences |
| url | http://hdl.handle.net/10356/48867 |
| work_keys_str_mv | AT wangjingyi intergenerationaldemographicrisksharingpropertiesofcurrentsocialsecuritysystemsinclosedeconomiesandopeneconomies AT yehonghai intergenerationaldemographicrisksharingpropertiesofcurrentsocialsecuritysystemsinclosedeconomiesandopeneconomies |