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Political Feasibility of Pension Reforms

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  • Uebelmesser Silke

    (CES, University of Munich, and CESifo)

Abstract

The impending demographic crisis calls for fundamental reforms of old-age security. In a democracy, however, reforms require the support of the majority. A reform that aims at reducing the size of unfunded pension systems is supported by the young and opposed by the old. As long as the young have the majority, this reform is feasible; as soon as society becomes a gerontocracy, there is risk of further expansion.

Suggested Citation

  • Uebelmesser Silke, 2004. "Political Feasibility of Pension Reforms," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-24, September.
    • Handle: RePEc:bpj:bejeap:v:topics.4:y:2004:i:1:n:20
    DOI: 10.2202/1538-0653.1162
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    1. Ishida, Ryo & Oguro, Kazumasa, 2018. "The viability of a voting system that allocates parliamentary seats according to life expectancy: An analysis using OLG models," Japan and the World Economy, Elsevier, vol. 47(C), pages 51-57.
    2. Sinn, Hans-Werner, 2005. "Europe's Demographic Deficit," Munich Reprints in Economics 934, University of Munich, Department of Economics.
    3. Selen, Jan & Stahlberg, Ann-Charlotte, 2007. "Why Sweden's pension reform was able to be successfully implemented," European Journal of Political Economy, Elsevier, vol. 23(4), pages 1175-1184, December.
    4. Theodore C. Bergstrom & John L. Hartman, 2005. "Demographics and the Political Sustainability of Pay-as-you-go Social Security," CESifo Working Paper Series 1378, CESifo.
    5. Hans-Werner Sinn, 2005. "Europe’s Demographic Deficit A Plea For A Child Pension System," De Economist, Springer, vol. 153(1), pages 1-45, December.

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