Sponsor(s):National Academy of Economic Strategy, Chinese Academy of Social Sciences
12 issues per year
Current Issue: Issue 02, 2020
Journal official website:http://www.cmjj.org/
Finance & Trade Economics is supervised by Chinese Academy of Social Sciences, and sponsored by National Academy of Economic Strategy, Chinese Academy of Social Sciences. It aims to explore new situations and new problems appeared in economic reform and economic construction in China, and to put forward new ideas for theoretical research and practice services. Its scope covers finance, taxation, currency, international economy and trade economy, city and real estate, cost and price, circulation economy, industrial economy, service economy, tourism economy, information and e-commerce. The Journal is included in CSSCI.
Finance & Trade Economics,2020,Vol 41,No. 02
This paper examined the impact of life expectancy extension and retirement age rise on economic growth by constructing an overlapping generation model with fiscal expenditure and endogenous fertility rate, and set targets to explore how to adjust the retirement age as life expectancy increases. The study found that life expectancy extension will lead to a decline in fertility rate, output per labor and total output but an increase in the proportion of fiscal pension expenditures, while raising the retirement age will lead to a rise in fertility rate, output per labor and total output but a decline in the proportion of fiscal pension expenditures. It shows that raising the retirement age can offset the negative impact of life expectancy extension. Against the goals of no increase in fiscal pension burden and no reduction in output per labor or total output, the retirement age threshold rises along with life expectancy extension, but the economic effects are quite different, and the fertility rate decreases in all the three cases. The policy implications of this paper are that against the background of life expectancy extension, raising the retirement age is a reasonable and necessary policy option. Establishing an adjustment mechanism linking the retirement age to life expectancy, broadening pension financing channels, and improving maternity supporting policies will help curb the decline in fertility rate, alleviate fiscal pension burden and boost economic growth.