Different Social Security Systems and Their Impact on Savings Rates and Economic Growth

Different Social Security Systems and Their Impact on Savings Rates and Economic Growth

Peng XiChen Zhongchang Yu Jiajia 

School of Public Affairs, Chongqing University China, No. 174 Shazhengjie, Shapingba, Chongqing

School of Public Affairs, Chongqing University China, No. 174 Shazhengjie, Shapingba, Chongqing

Chongqing Jianzhu College China, No. 8 Bolin, Nanan, Chongqing

Corresponding Author Email: 
15 March 2017
15 April 2017
30 March 2017
| Citation



This paper compared with different social security system, Pay-as-you-go (PAYG) and Funded pension system, and they have different degrees of impact on savings rates and economic growth in an overlapping generations model by using discrete optimization method and the Bellman equation, solving the value function makes it possible to obtain its optimal solution.


Funded pension system; PAYG pension System; OLG model; economic growth

1. Introduction
2. A Simple Model
3. Equilibrium Solution of model
4. Conclusion

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