Working Paper
Public Pensions and Capital Accumulation: The Case of Brazil
Gerhard Glomm, Jürgen Jung, Changmin Lee, Chung Tran
CESifo, Munich, 2005
CESifo Working Paper No. 1539
CESifo, Munich, 2005
CESifo Working Paper No. 1539
We use an OLG model to study the effects of the generous public sector pension system in Brazil. In our model there are two types of workers, one working in the private sector, the other working in the public sector. Public workers produce infrastructure or education services. We find that reducing generosity of the public sector pensions has large effects on capital accumulation and steady state income.
CESifo Category
Fiscal Policy, Macroeconomics and Growth
Fiscal Policy, Macroeconomics and Growth
Keywords: pension reform, capital accumulation
JEL Classification: E620, H410, H550