Abstract
This letter analyzes the impact of economic integration on capital accumulation and capital flows when countries differ in their social security systems. Funding and early retirement both foster capital accumulation relative to pay-as-you-go pensions with flexible retirement. When economies integrate, both imply capital outflow possibly resulting in utility losses.
Keywords
Economic union; Pension; Retirement age; Social security;
JEL codes
- F42: International Policy Coordination and Transmission
- H2: Taxation, Subsidies, and Revenue
- J26: Retirement • Retirement Policies
Reference
L. Artige, A. Dedry, and Pierre Pestieau, “Social security and economic integration”, Economics Letters, Elsevier, vol. 123, n. 3, June 2014, pp. 318–322.
See also
Published in
Economics Letters, Elsevier, vol. 123, n. 3, June 2014, pp. 318–322