Zubiri, Ignacio - In: EKONOMIAZ 85 (2014) 01, pp. 207-232
This paper compares the properties of funded and pay as go pension systems. When the population is aging pay as you go … systems can´t sustain a pension system. However, if taxes are used to finance part of the pensions, the pay as you go system … is better in all the relevant aspects. A system based in pay as you go pensions can´t (because of the transition cost …