Pay-As-You-Go Public Pension Systems: Two-Sided Altruism And Endogenous Growth

Within the framework of an overlapping generations model with two-sided altruism and endogenous growth, this paper calculates the rates of fertility, output growth, child-rearing cost, saving, consumption, net intertemporal transfer, bequest and gift, and compares the equilibrium solutions under different public pension systems. It proves that the Fully-Fertility-Linked Public Pension System (FFLPPS) is equivalent to the System Without Public Pension (WPPS), and the Partly-Fertility-Linked Public Pension System (PFLPPS) is equivalent to the Conventional Public Pension System (CPPS).