overlapping generations (olg) models of old age security

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Overlapping Generations Overlapping Generations (OLG) Models of Old Age (OLG) Models of Old Age Security Security Fall 2012 Fall 2012

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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. - PowerPoint PPT Presentation

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Page 1: Overlapping Generations (OLG) Models of Old Age Security

Overlapping Generations (OLG) Overlapping Generations (OLG) Models of Old Age SecurityModels of Old Age Security

Fall 2012Fall 2012

Page 2: Overlapping Generations (OLG) Models of Old Age Security

Family Based Old-Age SecurityFamily Based Old-Age Security

Page 3: Overlapping Generations (OLG) Models of Old Age Security

Family Based Old-Age SecurityFamily Based Old-Age Security

Pure Transfer EconomyPure Transfer Economy

No SavingNo Saving

No Rate of ReturnNo Rate of Return

Page 4: Overlapping Generations (OLG) Models of Old Age Security

Pay as You Go (PAYGO) Social Pay as You Go (PAYGO) Social Security SystemSecurity System

Page 5: Overlapping Generations (OLG) Models of Old Age Security

Pay as You Go (PAYGO) Social Pay as You Go (PAYGO) Social Security SystemSecurity System

Pure Transfer EconomyPure Transfer Economy

No SavingNo Saving

No Rate of ReturnNo Rate of Return

Page 6: Overlapping Generations (OLG) Models of Old Age Security

Transition to Privatized SystemTransition to Privatized System

Page 7: Overlapping Generations (OLG) Models of Old Age Security

Transition to Privatized SystemTransition to Privatized System

Investment plus Transfer EconomyInvestment plus Transfer Economy

Double burden during the transitionDouble burden during the transition

Net saving during the transitionNet saving during the transition

No double burden after the transitionNo double burden after the transition

No net saving after the transition.No net saving after the transition.

Page 8: Overlapping Generations (OLG) Models of Old Age Security

Thank YouThank You