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Pension Liabilities in the Seven Major Economies

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Paul van den Noord
Richard Herd

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Abstract

This paper forms part of on-going OECD work on the economic assessment of public pension systems in view of the process of the ageing of populations. It provides indicative estimates of the likely size of public pension liabilities in the main seven economies based on simplifying assumptions, and analyses various methods of financing these liabilities. The methodology developed here is based on the so-called generational accounts approach. Such accounts indicate in present-value terms the lifetime financial burden government programmes impose on present and future generations. Up to now, the methodology has been used to estimate public pension liabilities in France and Belgium, in the framework of the 1993 OECD Economic Surveys for those countries ...


Ce document fait partie d'un travail en cours à l'OCDE sur l'évaluation économique des systèmes publics de pension face au processus de vieillissement des populations. A titre indicatif, il fournit des estimations sur l'importance probable des engagements des systèmes publics de pensions dans les sept grands pays en s'appuyant sur des hypothèses simplifiées et analyse diverses méthodes de financement de ces engagements. La méthodologie qui est développée ici se fonde sur l'approche dite de la comptabilité générationnelle. Celle-ci indique en termes de valeur actuelle le fardeau financier que les programmes gouvernementaux imposent sur les générations présentes et futures leur vie durant. Jusqu'à présent, cette méthodologie a été utilisée pour estimer les engagements des systèmes publics de pension en France et en Belgique, dans le cadre des Études Économiques de l'OCDE de ces deux pays ...

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 142.

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Date of creation: 1993
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Handle: RePEc:oec:ecoaaa:142-en

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  3. Manfred Koch & Christian Thimann, 1999. "From Generosity to Sustainability: The Austrian Pension System and Options for its Reform," Empirica, Springer, vol. 26(1), pages 21-38, March. [Downloadable!] (restricted)
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  4. Serdar Sayan & Turalay Kenc, 1998. "Transmission of Demographic Shock Effects from Large to Small Countries : An Overlapping Generations CGE Analysis," Departmental Working Papers 985, Bilkent University, Department of Economics. [Downloadable!]
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  7. Giang, Thanh Long, 2004. "The Pension Scheme in Vietnam: Current Status and Challenges in an Aging Society," MPRA Paper 969, University Library of Munich, Germany. [Downloadable!]
  8. Meijdam, L. & Verbon, H.A.A., 1995. "Aging and Public Pensions in an Overlapping-Generations Model," Discussion Paper 38, Tilburg University, Center for Economic Research. [Downloadable!]
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  11. Robert Holzmann & Robert Palacios & Asta Zviniene, 2001. "On the Economics and Scope of Implicit Pension Debt: An International Perspective," Empirica, Springer, vol. 28(1), pages 97-129, March. [Downloadable!] (restricted)
  12. Paul J. M. Klumpes, 2003. "Determinants of government underfunded public pension liabilities in the OECD," European Accounting Review, Taylor and Francis Journals, vol. 12(3), pages 489-513, September. [Downloadable!] (restricted)
  13. Song, Zheng & Storesletten, Kjetil & Zilibotti, Fabrizio, 2007. "Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt," Memorandum 05/2008, Oslo University, Department of Economics. [Downloadable!]
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  14. Robert Fenge & Martin Werding, 2003. "Ageing and the Tax Implied in Public Pension Schemes: Simulations for Selected OECD Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  15. Turalay Kenc & William Perraudin, 1997. "European pension systems: a simulation analysis," Fiscal Studies, Institute for Fiscal Studies, vol. 18(3), pages 249-277, August. [Downloadable!]
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