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Pension Reforms in an Aging Society: A Fully Displayed Cohort Model

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  • Andras Simonovits

    () (Hungarian Academy of Sciences)

Abstract

We fully display a cohort model of an economy with an aging population, taking into account complications such as varying household size, habit formation, inheritance and credit constraints. Filling the model with numbers, we are able to compare different pension reforms: 1. the base run, where the contribution rate bears the entire burden of adjustment; 2. reduced accrual rates, 3. replacing wage indexation with price indexation and 4. raised retirement age. Whether the policy changes are anticipated or not, private reactions widely differ.

Suggested Citation

  • Andras Simonovits, 2012. "Pension Reforms in an Aging Society: A Fully Displayed Cohort Model," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 1-30, December.
  • Handle: RePEc:cmn:journl:y:2012:i:4:p:1-30
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    1. Andras Simonovits, 2012. "Pension Reforms in an Aging Society: A Fully Displayed Cohort Model," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 1-30, December.
    2. Zuzana Machova & Igor Kotlan, 2014. "Expenditures on Collective and Individual Services: Discussion on the Classification of Government Expenditures with Regard to their Inclusion into Growth Models," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 287-296, December.

    More about this item

    Keywords

    Population Aging; Pension Models; Pension Reforms;

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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