Private versus public old-age security

@article{Barnett2012PrivateVP,
  title={Private versus public old-age security},
  author={R. C. Barnett and J. Bhattacharya and M. Puhakka},
  journal={Journal of Population Economics},
  year={2012},
  volume={31},
  pages={703-746}
}
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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