Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply

Ole Jørgensen

Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply

Ole Jørgensen

Research output: Working paper › Research

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Abstract

Using a stochastic overlapping generations model with endogenous labour supply, this paper studies the design and performance of a policy rule for the retirement age in response to fertility and mortality shocks. Two main results are derived: First, to oset a change in the labour force the retirement age should adjust more than proportionally to the fertility change and, second, to be socially desirable the retirement age should be indexed less than proportionally to changes in life expectancy.

Original language	English
Place of Publication	Frederiksberg
Publisher	Centre for Economic and Business Research, Copenhagen Business School
Number of pages	29
Publication status	Published - 2009

Series	CEBR Discussion Paper
Number	2008-03

Keywords

Retirement age
Endogenous labour supply
Overlapping generations
Intergenerational risk sharing
Method of undetermined coefficients

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dp 2008-03Final published version, 353 KBLicence: CC BY-NC-ND

Cite this

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KW - Intergenerational risk sharing

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KW - Overlapping generations

KW - Intergenerational risk sharing

KW - Method of undetermined coefficients

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