This paper analyzes a social security policy with public debt in an overlapping generations growth model. In particular, the paper considers a situation in which population aging causes a heavy burden of social security payments where public debt is issued by the government to finance the...

The Czech public pension system is fiscally unsustainable in the long run because of population ageing, which is particularly pronounced in the Czech Republic. Some parametrical adjustments have been implemented since the beginning of the 1990s, but in contrast to other central European...