Skip to main content

Research on Optimal Enterprise Contribution of Hunan Province Based on OLG Model

  • Conference paper
  • First Online:
The 19th International Conference on Industrial Engineering and Engineering Management

Abstract

Optimizing the enterprise contribution is the key factor for promoting the reforming of public pension system and insuring the dynamic balance of social security fund. This paper has made a research on optimal enterprise contribution of Hunan province based on OLG model. The empirical result showed that life expectancy growth would raise the optimal enterprise contribution, while population growth rate decline would reduce the contribution, and the latter factor made more influence. If both two factors were introduced in the equilibrium equation, the optimal enterprise contribution would be reduced from 20 to 10.04 %, when life expectancy growth raised from 73.8 to 77.2 and population growth rate declined. The research on optimal enterprise contribution provides theory basis and the policy support for macroeconomic policy making and pension reforming promoting.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 369.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 469.00
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Auerbach AJ, Kotlikoff LJ (1989) The economic dynamics of an ageing population: the case of four OECD Countries. OECD Econ Rev 12(1):97–130

    Google Scholar 

  • Barro RJ (1974) The impact of social security of private saving. American Enterprise Inst, Washington DC, pp 21–35

    Google Scholar 

  • Bo J (2000) The influence of endowment insurance system arrangement on economic growth and Pareto efficiency. Econ Sci 27(1):78–88 (in Chinese)

    Google Scholar 

  • Casamatta G (2000) The political economy of social security. Scand J Econo 102(3):503–522

    Article  Google Scholar 

  • Diamond PA (1965) National debt in a neoclassical growth model. Am Econ Rev 55(1):1126–1150

    Google Scholar 

  • Fanti L, Gori L (2007) Fertility, income and welfare in an OLG model with regulated wages. Int Rev Econ 54(2):405–427

    Article  Google Scholar 

  • Fougère M, Mérette M (1998) Population ageing and current account in selected OECD countries. Working Papers-Department of Finance Canada, vol 4, no 1, pp 1–24

    Google Scholar 

  • Huang S, Sun T (2005) Informal institutions, consumption modes and assumption of OLG model—a theoretical analysis on households’ consumption in the oriental culture and belief (in Chinese). Econ Res J 24(4):57–65

    Google Scholar 

  • Hviding K, Mérette M (1998) Population effects of pension reform in the context of ageing. OLG simulations for seven OECD countries, OECD Working Paper, pp 1–23

    Google Scholar 

  • Li H, Bai X (2006) Life-cycle model and its application to research in aging China. Chin J Population Sci 28(4):28–35 (in Chinese)

    Google Scholar 

  • Liu Q, Hao S (2011) Theoretical analysis on uncertainty of aging issue in gift economy based on OLG model. Stat Res 28(10):84–90 (in Chinese)

    Google Scholar 

  • Lu D (2011) Population structure, economic growth and China’s household saving: empirical research based on OLG model and panel data. Shanghai Finance 32(1):10–15 (in Chinese)

    Google Scholar 

  • Neusser K (1993) Savings, social security, and bequests in an OLG model: a simulation exercise for Austria. J Econ 7(1):133–155

    Article  Google Scholar 

  • Rausch S, Rutherford TF (2010) Computation of equilibria in OLG models with many heterogeneous households. J Econ 36(2):171–189

    Google Scholar 

  • Romer PM (1986) Increasing returns and long run growth. J Polit Econ 94(2):1002–1037

    Article  Google Scholar 

  • Wang X, Zhai Y, Yan H (2010) Economic effects of the occupational pension system: the research based on general equilibrium model. Nankai Econ Stud 12(5):46–55 (in Chinese)

    Google Scholar 

  • Yang Z (2008) The public pension for enterprise employees, benefit replacement rate and population growth rate. Stat Res 25(5):38–42 (in Chinese)

    Google Scholar 

  • Yang Z (2010) OLG model analysis on public pension: principles and applications. Guangming Daily Press, Beijing, pp 27–45 (in Chinese)

    Google Scholar 

  • Yuan Z, He Z (2003) Dynamic inefficiency in China’s economy since 1990s. Econ Res J 24(7):18–27 (in Chinese)

    Google Scholar 

  • Yuan Z, Song Z (2000) The age composition of population, the endowment insurance system and optimal savings ratio in China. Econ Res J 11(1):24–32 (in Chinese)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ni Yang .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Yang, N. (2013). Research on Optimal Enterprise Contribution of Hunan Province Based on OLG Model. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38391-5_164

Download citation

Publish with us

Policies and ethics