| Abstract | Employing a dynamic time consistency model,this paper analyses the complementary effect between equity and efficiency for pension system.During the analysis , demographic structure、technical progress and capital markets will be considered.And then we will give a test to the consistent of China’s pension system in the past thirty years with Chinese data.Report shows that, the aim of pension reform under dynamic time consistency principle,which was to maximize the complementary effect between equity and efficiency.Only there is an increasing both in social welfare and individual revenue,the reform which will be consistent with dynamic time consistency principle.The empirical test and performance prediction showed that, under the situation of present and 30 years from now,the transition to full-funded system is still not ripe.In order to cope with dynamic time consistency principle ,for the whole pension system,the main stress should be put on commission account as past.Besides,the change tendency in capital ratios and social welfare showed that,though a dominant strategy,the relative advantage of pay-as-you-go system gradually eroded.Considering the situation of population、labor productivity and capital market,it was not allowed to raise the share of pay-as-you-go system, a condition where everything just be adjusted smoothly or remains the same may be the best choice. |