The Assurance Problem for Transfers Between Generations and the Necessity of Economic Growth
(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:
https://lup.lub.lu.se/record/03063786-0b70-425b-9ba1-8e21c5214982
- author
- Brandstedt, Eric LU
- organization
- publishing date
- 2023-03-31
- 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}}, }