Private versus public old-age security

  title={Private versus public old-age security},
  author={Richard C. Barnett and Joydeep Bhattacharya and Mikko Puhakka},
  journal={Journal of Population Economics},
We directly compare two institutions, a family compact—a parent makes a transfer to her parent in anticipation of a possible future gift from her children—with a pay-as-you-go, public pension system, in a life cycle model with endogenous fertility wherein children are valued both as consumption and investment goods. Absent intragenerational heterogeneity, we show that a benevolent government has no welfare justification for introducing public pensions alongside thriving family compacts since… Expand

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