Author(s)

Hideki Nakamura, Masaya Yasuoka

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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.

Fertility, Pensions, Target Level of Government Debt, Multiple Equilibria

H. Nakamura and M. Yasuoka, "Multiple Equilibria between Fertility Rates and Pension Levels Based on the Target Level of Government Debt," Theoretical Economics Letters, Vol. 1 No. 3, 2011, pp. 95-98. doi: 10.4236/tel.2011.13020.