Optimal Taxation and Pension Systems in Overlapping Generations Models
https://doi.org/10.38050/2078-3809-2025-17-3-53-84
Abstract
In this article, we systematize the papers devoted to the development of general equilibrium models in the context of optimal taxation and pension systems. In the first part of the article, we will discuss the key principles of optimal taxation and the results obtained on the basis of general equilibrium models. We then look at the design of different pension systems, the problems associated with the transition between systems, and the role of the pension system in the context of absent or imperfect financial markets. As part of the review, it was shown that, firstly, the size of the elasticity of labor supply can significantly affect not only the size of the optimal income tax, but also the type of taxation scale itself. Second, the key driver of a positive tax on capital is the increasing elasticity of labor supply with age. Third, if risk-averse individuals exist under conditions of uncertainty, which can take the form of systematic and idiosyncratic risks, the welfare system can provide benefits to individuals by partly replacing the missing insurance markets. Finally, if the economy is dynamically inefficient, a pay-as-you-go pension system can deal with the problem of overaccumulation.
About the Authors
A. V. Zamnius
Lomonosov Moscow State University;
Gaidar Institute for Economic Policy
Russian Federation
Russian Federation
Alexey V. Zamnius, Postgraduate student, Faculty of Economics
Moscow
A. E. Shpilevaya
Gaidar Institute for Economic Policy;
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
Angelina E. Shpilevaya, Researcher
Moscow
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For citations:
Zamnius A.V., Shpilevaya A.E. Optimal Taxation and Pension Systems in Overlapping Generations Models. Scientific Research of Faculty of Economics. Electronic Journal. 2025;17(3):53-84. (In Russ.) https://doi.org/10.38050/2078-3809-2025-17-3-53-84
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