A Research On The Pension Financing Model

The thesis consists of 9 chapters. Through analysing the deep reason of pension institutional transition around theworld, one conclusion has been drawn that economic growth is essential if the problemof pension can be settled successfully in an increasingly aging society. Then the mainissue is put forward in the thesis: which pension financing model shall we choose afteranalysing how the various pension system influences the economic growth and welfare? Chapter 2 and 3 mainly focus on the general issues of pension, which lays asolid theoretical foundation for analysing how the various pension systems influence theeconomic growth and welfare. Chapter 2 mainly introduces the historic developmentand the evolution of pension system so that we can learn the general pattern of how thepension system has been developed and reformed? Chapter 3 is a summary of literatureon pension home and abroad. Chapter 4 is the connecting chapter. On the basis of the general issues of pensionin the previous chapters, the research on the basic principles of main pension system isconducted. Meanwhile, the analysis of the chapter will lay a foundation for thefollowing chapters as well as a supplement. In the following chapters, we mainlyanalyse how the various pension systems influence the saving and labour supply, whichare also used as intermediate variables to learn the impacts of the various pensionsystems on economic growth and welfare. In fact, even if the pension system has noimpact on the saving, it will influence the welfare of agents as a typicalgovernment-interfering system. Under the circumstance, will the pension system lead tothe positive or negative impacts on the welfare of agents? It is the first question that thechapter will answer. In the analysis of the following chapters, assuming that the tax rateof pension system is exogenous, is there an optimal pension tax rate in the society? If itdoes exist, can we obtain it through the utility maximization equation and what factorswill influence it? It is the second question. Chapter 5, 6 and 7 discuss how the various pension systems influence theeconomic growth and welfare on the basis of traditional economic growth model.Chapter 5 is on how the various pension system influences the saving. We can draw abasic conclusion on the theoretical perspective with reference to the different models: 1The impact of pension systems on saving depends on the choice of models and differentconclusions correspond to different models. The conclusion is still uncertain after theempirical analysis. Chapter 6 how the various pension systems influence the laboursupply? We make the analysis with an endogenous model of labour supply on thetheoretical and empirical perspectives. Chapter 7 refers to the overlapping generationmodel evolving from the neo-classic economic growth model and analyse how thevarious pension systems influence the economic growth and welfare according to thePareto optimal criterion. We conclude that the pension financing model depends on thedynamic efficiency of economic performance in a country since we are uncertain whichpension financing model facilitates the economic growth and welfare. Up to now, we have been discussing how the various pension systems influencethe economic growth and welfare in the traditional economic growth model, which hasone obvious disadvantage that we have ignored the relationship among the humancapital investment, birth and economic growth. In order to overcome the shortcoming,we establish an economic growth model endogenizing the human capital and birth toexplore how the various pension systems influence the economic growth and welfareand compare the impacts of two types of pension financing models on economic growth.The conclusion is that as long as the degree of seeking the quantity of children does notexceed the degree of caring about the welfare of children, the cash system will promote...