Varying the parameters of the Slovenian pension system: an analysis with an overlapping-generations general equilibrium model
AbstractThe article presents an analysis of welfare effects in Slovenia, an analysis of macroeconomic effects of the Slovenian pension reform and an analysis of effects of the pension fund deficit on sustainability of Slovenian public finances with a dynamic OLG general equilibrium model. Stress was layed upon varying two parameters of the current pension system; the age of retirement and the indexation rate of pensions. It was established that by tightening these parameters the elderly would lose, while the present and future generations would gain. The macroeconomic effects were in accordance with expectations; the employment level increased, while the effects of tightened parameters on real consumption were negative. Since the PAYG burden on incomes decreased, the investment activity and thus the capital stock increased somewhat as well. Nevertheless, the long-term impact on the real GDP appeared to be ambiguous. Without doubt one has to take into account the demographic slowdown of GDP growth. Finally, tightening the parameters of the pension system substantially increased the long-term sustainability of the pension system; while lower indexation level of pension considerably decreased the deficit of the public pension fund, increase of retirement age was even able to delay the incidence of additional deficit.
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 University Library of Munich, Germany in its series MPRA Paper with number 10349.
Date of creation: Mar 2007
Date of revision:
general equilibrium models; indexation of pensions; macroeconomic effects; OLG-GE; PAYG; pension system; retirement age; Slovenia; welfare analysis;
Other versions of this item:
- Miroslav Verbic, 2007. "Varying the Parameters of the Slovenian Pension System: an Analysis with an Overlapping-Generations General Equilibrium Model," Post-Communist Economies, Taylor & Francis Journals, vol. 19(4), pages 449-470.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Modigliani, Franco, 1985.
"Life Cycle, Individual Thrift and the Wealth of Nations,"
Nobel Prize in Economics documents
1985-1, Nobel Prize Committee.
- Modigliani, Franco, 1986. "Life Cycle, Individual Thrift, and the Wealth of Nations," American Economic Review, American Economic Association, vol. 76(3), pages 297-313, June.
- Miroslav Verbic & Boris Majcen & Renger van Nieuwkoop, 2005.
"Sustainability of the Slovenian Pension System: An Analysis with an Overlapping-generations General Equilibrium Model,"
GE, Growth, Math methods
- Miroslav VerbiÄ & Boris Majcen & Renger Van Nieuwkoop, 2006. "Sustainability of the Slovenian Pension System: An Analysis with an Overlapping-Generations General Equilibrium Model," Eastern European Economics, M.E. Sharpe, Inc., vol. 44(4), pages 60-81, August.
- Sašo Polanec & Aleš Ahčan & Miroslav Verbič, 2013.
"Retirement decisions in transition: microeconometric evidence from Slovenia,"
Taylor & Francis Journals, vol. 25(1), pages 99-118, March.
- Polanec, Sašo & Ahčan, Aleš & Verbič, Miroslav, 2010. "Retirement Decisions in Transition: Microeconometric Evidence from Slovenia," MPRA Paper 28460, University Library of Munich, Germany.
- Cok, Mitja & Sambt, Joze & Kosak, Marko & Verbic, Miroslav & Majcen, Boris, 2011.
"Distribution of personal income tax changes in Slovenia,"
32704, University Library of Munich, Germany.
- Mitja Čok & Jože Sambt & Marko Košak & Miroslav Verbič & Boris Majcen, 2011. "Distribution of personal income tax changes in Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 503-515, November.
- Miroslav Verbic, 2008.
"The Ageing Population and the Associated Challenges of the Slovenian Pension System,"
Financial Theory and Practice,
Institute of Public Finance, vol. 32(3), pages 321-338.
- Verbic, Miroslav, 2008. "The ageing population and the associated challenges of the Slovenian pension system," MPRA Paper 10347, University Library of Munich, Germany.
- Miroslav Verbič & Boris Majcen & Olga Ivanova & Mitja Čok, 2011.
"R&D and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth,"
Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(1), pages 67-89, March.
- Verbic, Miroslav & Majcen, Boris & Cok, Mitja, 2009. "R&D and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth," MPRA Paper 17819, University Library of Munich, Germany.
- Verbic, Miroslav, 2007. "Modelling the pension system in an overlapping-generations general equilibrium modelling framework," MPRA Paper 10350, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.