Transcript Overlapping Generations (OLG) Models of Old Age Security

Overlapping Generations (OLG)
Models of Old Age Security
Fall 2012
Family Based Old-Age Security
Family Based Old-Age Security
Pure Transfer Economy
No Saving
No Rate of Return
Pay as You Go (PAYGO) Social
Security System
Pay as You Go (PAYGO) Social
Security System
Pure Transfer Economy
No Saving
No Rate of Return
Transition to Privatized System
Transition to Privatized System
Investment plus Transfer Economy
Double burden during the transition
Net saving during the transition
No double burden after the transition
No net saving after the transition.
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