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He calls for the end of self-delusion among politicians that the current pay-as-you-go pension system is unsustainable.
The cinema remains what it has been for the past century - a pre-timed showing of a film in a public location on a pay-as-you-go basis.
One possibly counterintuitive effect of increases in life expectancy is consequently that they raise the rate of return for pay-as-you-go pension systems.
This reflects the difference in the methodology used to calculate the pay-as-you-go asset.
Proposition 2 has an interesting implication concerning the distributional impact of a pay-as-you-go public pension program.
Reasons are threefold : these countries have large and ailing pay-as-you-go public pension systems, relatively thin capital markets and less than benchmark capital performance.
Or why paying into a private funded pension is assumed to be morally and financially superior to paying into a collective pay-as-you-go pension.
Their focus is particularly important today, as pay-as-you-go pensions around the globe face increasing financing pressures due to lower birth rates and increased life expectancies.
It is a pay-as-you-go feature in terms of syntax.
It is a pay-as-you-go feature in terms of implementation.
The conversion from pay-as-you-go financing to more funding is the same as before.
From the economic point of view, therefore, all public schemes, however financed, are pay-as-you-go.
The procedure makes it possible to apply the algorithm of double-entry bookkeeping in analyzing and presenting the financial position and development of pay-as-you-go pension systems.
In several countries, this concern is motivated in part by the combination of pay-as-you-go financing with an ageing population.
In period 1, the economy is in the steady state corresponding to an economy with a pay-as-you-go social security system as described earlier.