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The Assurance Problem for Transfers Between Generations and the Necessity of Economic Growth

Brandstedt, Eric LU (2023) p.55-70
Abstract
Population ageing is a fact of all advanced economies. Fewer people are born all the while current members live longer. The support which old people have come to depend on, for example through elderly care and pensions, thus becomes increasingly expensive. This accentuates an assurance problem. Although it has been and still is the case that the young are willing to support the currently old, this support is not unconditional. In return they trust that coming generations will support them one day. Historically pro-old welfare state institutions (e.g., pension systems) have offered individuals this assurance: their claim on future generation to support them has been credible simply by positive economic and demographic development. Economic... (More)
Population ageing is a fact of all advanced economies. Fewer people are born all the while current members live longer. The support which old people have come to depend on, for example through elderly care and pensions, thus becomes increasingly expensive. This accentuates an assurance problem. Although it has been and still is the case that the young are willing to support the currently old, this support is not unconditional. In return they trust that coming generations will support them one day. Historically pro-old welfare state institutions (e.g., pension systems) have offered individuals this assurance: their claim on future generation to support them has been credible simply by positive economic and demographic development. Economic growth has been a blessing for the cooperation between generations necessary to realise old age support. This paper describes this assurance problem in simple game theoretical terms, argues that is has been neglected in historically prominent justifications of pro-old welfare state institutions, and discusses what can be done to preserve trust in times of population ageing and weak economic growth. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
host publication
Value, Morality & Social Reality : Essays Dedicated to Dan Egonsson, Björn Pettersson & Toni Rønnow-Rasmussen - Essays Dedicated to Dan Egonsson, Björn Pettersson & Toni Rønnow-Rasmussen
editor
Garcia, Andrés G. ; Gunnemyr, Mattias and Werkmäster, Jakob
pages
17 pages
publisher
Department of Philosophy, Lund University
ISBN
978-91-89415-66-9
978-91-89415-65-2
DOI
10.37852/oblu.189.c513
language
English
LU publication?
yes
id
03063786-0b70-425b-9ba1-8e21c5214982
alternative location
https://books.lub.lu.se/catalog/view/189/266/1518
date added to LUP
2023-03-30 10:54:14
date last changed
2024-02-08 14:09:59
@inbook{03063786-0b70-425b-9ba1-8e21c5214982,
  abstract     = {{Population ageing is a fact of all advanced economies. Fewer people are born all the while current members live longer. The support which old people have come to depend on, for example through elderly care and pensions, thus becomes increasingly expensive. This accentuates an assurance problem. Although it has been and still is the case that the young are willing to support the currently old, this support is not unconditional. In return they trust that coming generations will support them one day. Historically pro-old welfare state institutions (e.g., pension systems) have offered individuals this assurance: their claim on future generation to support them has been credible simply by positive economic and demographic development. Economic growth has been a blessing for the cooperation between generations necessary to realise old age support. This paper describes this assurance problem in simple game theoretical terms, argues that is has been neglected in historically prominent justifications of pro-old welfare state institutions, and discusses what can be done to preserve trust in times of population ageing and weak economic growth.}},
  author       = {{Brandstedt, Eric}},
  booktitle    = {{Value, Morality & Social Reality : Essays Dedicated to Dan Egonsson, Björn Pettersson & Toni Rønnow-Rasmussen}},
  editor       = {{Garcia, Andrés G. and Gunnemyr, Mattias and Werkmäster, Jakob}},
  isbn         = {{978-91-89415-66-9}},
  language     = {{eng}},
  month        = {{03}},
  pages        = {{55--70}},
  publisher    = {{Department of Philosophy, Lund University}},
  title        = {{The Assurance Problem for Transfers Between Generations and the Necessity of Economic Growth}},
  url          = {{http://dx.doi.org/10.37852/oblu.189.c513}},
  doi          = {{10.37852/oblu.189.c513}},
  year         = {{2023}},
}