Papers presented at confernce in April 2013, Yekaterinburg, Ural Federal University
In the article there are analyzes the direction of reforming of institutional regulation of pension transfers in the developed world and in Ukraine. On the basis of the institutional approach argumented the importance of the transition to a funded pension system as adequate market conditions. Analyzed institutional factors limiting its introduction in Ukraine.
Under fiscal stress the government often turns to practice of financial repression to lower the debt service cost. Captive pension fund is one of the targets for enlarging the demand for public debt. We propose an extension of the overlapping generations model with the fully-funded pension system and fiscal policy to question the optimality of financial repression in the form of non-market placement of the public debt. Despite its negative impact on the capital accumulation, financial repression is used to finance public goods and can be an element of optimal tax policy of the benevolent government.