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...

Implicit pension debt involved in existing pay-as-you-go public pension schemes is nowadays seen as an important determinant of the long-term sustainability of general government finances. Explicit up-dated calculations regarding its size are however largely lacking. The present paper takes up...