Capital Accumulation and Welfare influenced by Pension Systems on Overlapping Generations Model

Economic system is made up of overlapping generations model with the young generations and old generations. At first this paper studies the equilibrium condition of competitive market of decentralized economy based on this model. Then it discusses that the saving and capital accumulation are influenced by pension systems, which including the funded system and payasyougo system, and analyzes that the welfare of various generation peoples is influenced by the both of them. In addition, this paper hopes to provide some worthy suggestions for the reform of Chinese social security system based on positive research. 