A mathematical model for social security systems with dynamical systems

Main Article Content

Gilberto González Parra
Abraham J Arenas https://orcid.org/0000-0003-3106-1271

Keywords

Retirement model, Mathematical modeling, Social Security, Dynamical system

Abstract

In this paper it is proposed a mathematical approach based on dynamic systems to study the effect of the increase in the Social Security normal retirement age on the worker and on the dynamics of retiree populations. In order to simplify this initial effort, the proposed model does not include some economic variables, such as wage growth, earnings or productivity. Here, we employ numerical simulations of the model to investigate the dynamics of the labor force under different demographic scenarios. Analysis of this type of model with numerical simulations can help government economic planners make optimal strategies to sustain pension systems and forecast future trends of pensioner and worker populations.

 MSC:  97M10, 97M40.

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