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Pension System Reform: Overlapping Generations Model Simulations for Iran
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Elham Ahmadpour1   , Mohammad Taghi Gilak Hakimabadi2 , Majid Dashtban Faroji3 , Mojtaba Ghasemi4 |
1- Ph.D. Students in Economics Dep. of Economics of University of Mazandaran
2- Associate Professor of University of Mazandaran , ahmadpour.elham@gmail.com
3- Assistant Professor of Faculty of Human Sciences,university ob Bojnord, Iran
4- Assistant Professor of Faculty of Law, Shahid Beheshti university Tehran, Iran |
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Abstract: (1034 Views) |
Pension systems in most developed countries are considered to be the largest non-banking financial institutions and can be an effective factor for economic growth and development in addition to ensuring social welfare, especially during old age. In Iran, the discussion of pension reforms for many years due to different reasons, major challenges caused by demographic changes, aging population, decrease in fertility rate, increase in life expectancy and fundamental changes in the labor market such as unemployment, decrease in the quality and quantity of jobs and the expansion of the informal economy are the major concerns of policy makers. This article analyzes and simulates Iran's social security system in the framework of general equilibrium by using the three-period overlapping generations model. The optimal consumption and saving behavior and the level of people's utility are different during the lifetime under different pension systems. The simulation results show that the full savings system has a higher physical capital accumulation than the current payment pension system, which leads to higher national consumption and national production in the full savings system.
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Article number: 10 |
| Keywords: Social Security, Pension Deficiency, Overlapping Generation Model, Capital Accumulation |
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Full-Text [PDF 1058 kb]
(388 Downloads)
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Article type: Research |
Subject:
Special
Received: 2023/01/4 | Accepted: 2023/04/8 | Published: 2023/07/1
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