Multiple Equilibria between Fertility Rates and Pension Levels Based on the Target Level of Government Debt ()
Abstract
We show that when the government has a target debt level, multiple equilibria exist in the relationship between fertility rates and pension levels. One is associated with a high fertility rate and a high pension level. The other is associated with a low fertility rate and a low pension level. If the government fails to provide adequate security for individuals during their retirement years, it would result in a failure of coordination between the government and individuals.
Share and Cite:
Nakamura, H. and Yasuoka, M. (2011) Multiple Equilibria between Fertility Rates and Pension Levels Based on the Target Level of Government Debt.
Theoretical Economics Letters,
1, 95-98. doi:
10.4236/tel.2011.13020.
Conflicts of Interest
The authors declare no conflicts of interest.
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