| Budget Amount *help |
¥5,200,000 (Direct Cost: ¥4,000,000、Indirect Cost: ¥1,200,000)
Fiscal Year 2014: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
Fiscal Year 2013: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
Fiscal Year 2012: ¥2,080,000 (Direct Cost: ¥1,600,000、Indirect Cost: ¥480,000)
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| Outline of Final Research Achievements |
We have studied the effects of pay-as-you-go pension system on capital accumulation, welfare and income inequality under a two-period overlapping generations model with heterogeneous agents. According to conventional wisdom, an increase in PAYGO pension size will crowd out capital if an economy is dynamically efficient, which imply the decrease in social welfare. Our research, however, obtained exactly the opposite results. We examine a pay-as-you-go policy in an economy containing heterogenous households--an increase in constant contribution financed by a decrease in contribution rate proportional to income. We can show that the policy crowds in capital and increases welfare. Moreover, we obtained a necessary and sufficient condition under which the policy will decrease the inequality in life income distribution.
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