1.Consider again the OLG model . Explain briefly and clearly (without algebra) why moving from a PAYG to a fully funded

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1.Consider again the OLG model . Explain briefly and clearly
(without algebra) why moving from a PAYG to a fully funded pension
system does not generate a Pareto improvement:
if 1 + r > (1 + a)(1 + n), even though the opposite is true,
that is, even though moving from a fully funded to PAYG system does
generate a Pareto improvement if 1+r < (1+a)(1+n). (We are of
course assuming that welfare is increasing in consumption.)