Ronald Lee, Andrew Mason and Timothy Miller 2000
A demographically realistic model incorporating life cycle saving motives is used to simulate effects of changing a transfer-based old-age support to a funded system, applied to the cases of Taiwan and the US. Population ageing contributes to growth in output per worker in funded systems, while causing smaller increase in capital in transfer systems; early changes to a funded system harnesses the power of an ageing population to drive capital accumulation.
