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On The Possibility Of Pareto‐Improving Pension Reform

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  • TATIANA DAMJANOVIC

Abstract

The aim of this paper is twofold. First, it provides a simple framework for the analyses of the transitions between two steady states with different fiscal policies. This allows us to clarify the existing results on the possibility of Pareto‐improving transitions from pay‐as‐you‐go to fully funded pension systems. We show that the reduction in the marginal tax rate is a sufficient condition for the possibility of such pension reforms. Second, the paper investigates the features and the duration of the shortest Pareto‐improving pension reform in an open economy.

Suggested Citation

  • Tatiana Damjanovic, 2006. "On The Possibility Of Pareto‐Improving Pension Reform," Manchester School, University of Manchester, vol. 74(6), pages 711-724, December.
    • Handle: RePEc:bla:manchs:v:74:y:2006:i:6:p:711-724
    DOI: 10.1111/j.1467-9957.2006.00525.x
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    1. Feldstein, Martin, 1996. "The Missing Piece in Policy Analysis: Social Security Reform," American Economic Review, American Economic Association, vol. 86(2), pages 1-14, May.
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    8. Pascal Belan & Philippe Michel & Pierre Pestieau, 1998. "Pareto-Improving Social Security Reform," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 23(2), pages 119-125, December.
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    10. Laurence J. Kotlikoff, 1998. "Simulating the Privatization of Social Security in General Equilibrium," NBER Chapters, in: Privatizing Social Security, pages 265-311, National Bureau of Economic Research, Inc.
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    Cited by:

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    3. Mark A. Roberts, 2013. "Pareto-improving pension reform through technological implementation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(3), pages 317-342, July.

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