Multiple Equilibria between Fertility Rates and Pension Levels Based on the Target Level of Government Debt

Hideki Nakamura, Masaya Yasuoka

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DOI: 10.4236/tel.[phone]                

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.

Keywords

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

Conflicts of Interest

The authors declare no conflicts of interest.

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