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A Revision of the Revaluation Index of Spanish Pensions

Author

Listed:
  • Oriol Roch

    (Universitat de Barcelona)

  • Manuela Bosch-Príncep

    (Universitat de Barcelona)

  • Isabel Morillo

    (Universitat de Barcelona)

  • Daniel Vilalta

    (Universidad de Alcalá)

Abstract

This article reviews the methodological aspects of the revaluation index of Spanish pensions developed following Law 23/2013 which regulates the sustainability factor and revaluation index of the Social Security pension system. From a gradual breakdown of the elements that make up the revaluation index, an exposition is given of the formal and implementation problems it involves. Finally, an alternative model based on dynamic optimization techniques is proposed and its use is illustrated with numerical examples.

Suggested Citation

  • Oriol Roch & Manuela Bosch-Príncep & Isabel Morillo & Daniel Vilalta, 2017. "A Revision of the Revaluation Index of Spanish Pensions," Hacienda Pública Española / Review of Public Economics, IEF, vol. 222(3), pages 109-134, September.
    • Handle: RePEc:hpe:journl:y:2017:v:222:i:3:p:109-134
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    References listed on IDEAS

    as
    1. J. Ignacio Conde-Rui & Javier Alonso, "undated". "El futuro de las pensiones en España: Perspectivas y lecciones," Working Papers 2004-03, FEDEA.
    2. Jimeno, Juan F. & Rojas, Juan A. & Puente, Sergio, 2008. "Modelling the impact of aging on social security expenditures," Economic Modelling, Elsevier, vol. 25(2), pages 201-224, March.
    3. Steven Haberman & Alexandros Zimbidis, 2002. "An Investigation of the Pay-As-You-Go Financing Method Using a Contingency Fund and Optimal Control Techniques," North American Actuarial Journal, Taylor & Francis Journals, vol. 6(2), pages 60-75.
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    Citations

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    Cited by:

    1. Meritxell Solé & Guadalupe Souto & Concepció Patxot, 2019. "Sustainability and Adequacy of the Spanish Pension System after the 2013 Reform: A Microsimulation Analysis," Hacienda Pública Española / Review of Public Economics, IEF, vol. 228(1), pages 109-150, March.

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    More about this item

    Keywords

    Revaluation index; automatic balancing mechanisms; Spanish Social Security System;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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