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

Ole Jørgensen

    Research output: Working paperResearch

    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 languageEnglish
    Place of PublicationFrederiksberg
    PublisherCentre for Economic and Business Research, Copenhagen Business School
    Number of pages29
    Publication statusPublished - 2009
    SeriesCEBR Discussion Paper
    Number2008-03

    Keywords

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

    Cite this

    Jørgensen, O. (2009). Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply. Frederiksberg: Centre for Economic and Business Research, Copenhagen Business School. CEBR Discussion Paper, No. 2008-03
    Jørgensen, Ole. / Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply. Frederiksberg : Centre for Economic and Business Research, Copenhagen Business School, 2009. (CEBR Discussion Paper; No. 2008-03).
    @techreport{c2d793506ba411de96d9000ea68e967b,
    title = "Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply",
    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.",
    keywords = "Retirement age, Endogenous labour supply, Overlapping generations, Intergenerational risk sharing, Method of undertemined coefficients, Retirement age, Endogenous labour supply, Overlapping generations, Intergenerational risk sharing, Method of undetermined coefficients",
    author = "Ole J{\o}rgensen",
    year = "2009",
    language = "English",
    series = "CEBR Discussion Paper",
    publisher = "Centre for Economic and Business Research, Copenhagen Business School",
    number = "2008-03",
    type = "WorkingPaper",
    institution = "Centre for Economic and Business Research, Copenhagen Business School",

    }

    Jørgensen, O 2009 'Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply' Centre for Economic and Business Research, Copenhagen Business School, Frederiksberg.

    Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply. / Jørgensen, Ole.

    Frederiksberg : Centre for Economic and Business Research, Copenhagen Business School, 2009.

    Research output: Working paperResearch

    TY - UNPB

    T1 - Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply

    AU - Jørgensen, Ole

    PY - 2009

    Y1 - 2009

    N2 - 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.

    AB - 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.

    KW - Retirement age

    KW - Endogenous labour supply

    KW - Overlapping generations

    KW - Intergenerational risk sharing

    KW - Method of undertemined coefficients

    KW - Retirement age

    KW - Endogenous labour supply

    KW - Overlapping generations

    KW - Intergenerational risk sharing

    KW - Method of undetermined coefficients

    M3 - Working paper

    T3 - CEBR Discussion Paper

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

    PB - Centre for Economic and Business Research, Copenhagen Business School

    CY - Frederiksberg

    ER -

    Jørgensen O. Retirement Indexation in a Stochastic Model with Overlapping Generations and Endogenous Labour Supply. Frederiksberg: Centre for Economic and Business Research, Copenhagen Business School. 2009.