Optimal social security in a dynastic model with investment externalities and endogenous fertility

@inproceedings{Zhang2006OptimalSS,
  title={Optimal social security in a dynastic model with investment externalities and endogenous fertility},
  author={Jie Zhang},
  year={2006}
}
This paper studies optimal pay-as-you-go social security with positive bequests and endogenous fertility. With an investment externality, a competitive solution without social security suffers from under-investment in capital and over-reproduction of population. We show that social security can improve welfare by reducing fertility and increasing capital… CONTINUE READING