Capital accumulation in a stochastic overlapping generations model with social Security (Q1851236)

Based on a stochastic version of the overlapping generations model due to \textit{Y. Wang} [ibid. 61, 423--435 (1993; Zbl 0802.90025)] the author investigates the impact of incorporating a social security system. In particular it is shown that (under certain assumptions) the probability distribution of the capital stock in the absence of social security dominates (in the sense of stochastic dominance) the corresponding distribution in a pay-as-you-go system. Furthermore, the author obtains conditions which are sufficient for the existence and uniqueness of stationary equilibria in a pay-as-you-go system.