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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Main Authors: Wang, Jingyi., Ye, Honghai.
Other Authors: School of Humanities and Social Sciences
Format: Final Year Project
Language:English
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10356/48867
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.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
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Social sciences
spellingShingle DRNTU::Social sciences
Wang, Jingyi.
Ye, Honghai.
Intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies.
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.
author2 School of Humanities and Social Sciences
author_facet School of Humanities and Social Sciences
Wang, Jingyi.
Ye, Honghai.
format Final Year Project
author Wang, Jingyi.
Ye, Honghai.
author_sort Wang, Jingyi.
title 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_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_sort intergenerational demographic risk-sharing properties of current social security systems in closed economies and open economies.
publishDate 2012
url http://hdl.handle.net/10356/48867
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