Changes in the Implicit Debt Burden of the Hungarian Social Security System
AbstractThe paper studies the implicit debt burden of the Hungarian social security system, and especially its changes after certain real and hypothetical reform measures. It uses a computer simulation of a demographic model. The most important results are the following. The Hungarian implicit debt burden, prior to the 1998 reform, was quite substantial but not extraordinarily high in an international comparison. As the result of the implemented reforms, it has decreased from 100% of 1995 GDP to roughly 40% of it. This is equivalent to a permanent budget cut of approximately 1.5% of GDP per year. If we smooth the cyclicality of the late 90s less, then these measures are even better. Considering further reform scenarios, the only promising direction (let alone the unrealistic 5% improvement in revenue collection) was the decrease of the size of the first (PAYG) pillar of pensions. Cutting contribution rates (which is a current policy proposal) seems absolutely infeasible from a long-run perspective.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Magyar Nemzeti Bank (the central bank of Hungary) in its series MNB Working Papers with number 1999/8.
Length: 43 pages
Date of creation: 1999
Date of revision:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Soòa KILIÁNOVÁ & Igor MELICHERÈÍK & Daniel ŠEVÈOVIÈ, 2006. "A Dynamic Accumulation Model for the Second Pillar of the Slovak Pension System," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 56(11-12), pages 506-521, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maja Bajcsy).
If references are entirely missing, you can add them using this form.