Complex dynamics in an OLG model of neoclassical growth with endogenous retirement age and public pensions

摘要: Abstract This study analyses the dynamics of a general equilibrium, overlapping-generations (closed) economy with pay-as-you-go public pensions and tax-financed health investments that affect retirement time when old. Life typical agent is divided between youth (firth period) old age (second period). The latter period life is, in turn, work proportion contingent on an individual’s state health. We show that: (i) unique non-trivial steady exists, (ii) labour income tax rates used to finance expenditure or are included intermediate range values, complex occur individuals have perfect foresight. holds because increase either fraction spent working disability reduces savings capital accumulation. In addition, dynamic phenomena such as multiple bubbling structures related bifurcation diagram can be observed. Under some assumptions, we rise care and/or initially destabilises steady-state equilibrium causes but eventually acts stabilising device.