Public Pensions and Capital Accumulation: The Case of Brazil
36 Pages Posted: 24 Oct 2005
Date Written: September 2005
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.
Keywords: pension reform, capital accumulation
JEL Classification: E62, H41, H55
Suggested Citation: Suggested Citation