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Projecting Pension Expenditures in Spain: On Uncertainty,Communication and Transparency

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  • Rafael Domenech
  • Angel Melguizo

Abstract

In this paper we suggest a set of indicators about the future performance of the Spanish public pension system and a suitable method of representing their uncertainty, in order to improve the communication to the public opinion about its main future challenges. Spain seems a particularly interesting case in Europe to illustrate our proposals, since the social security system has been in surplus for nine consecutive years, in sharp contrast to the projections made just a decade ago, but, at the same time, most projections foresee for Spain one of the highest increases in public expenditure among EU countries due to ageing. We argue that simple, transparent, credible, public and periodic indicators, which take explicitly into account the uncertainty about future demographic, economic and institutional developments, may contribute to improve the debate on the policies needed to strengthen the pension system.

Suggested Citation

  • Rafael Domenech & Angel Melguizo, 2009. "Projecting Pension Expenditures in Spain: On Uncertainty,Communication and Transparency," Working Papers 0911, BBVA Bank, Economic Research Department.
  • Handle: RePEc:bbv:wpaper:0911
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    Cited by:

    1. Javier Vazquez Grenno, 2010. "Spanish pension system: Population aging and immigration policy," Hacienda Pública Española, IEF, vol. 195(4), pages 37-64, december.
    2. Antonio Cabrales & Piero Gottardi & Fernando Vega-Redondo, 2017. "Risk Sharing and Contagion in Networks," Review of Financial Studies, Society for Financial Studies, pages 3086-3127.
    3. Angel De la Fuente & Rafael Domenech, 2011. "El impacto sobre el gasto de la reforma de las pensiones: una primera estimacion," Working Papers 1109, BBVA Bank, Economic Research Department.
    4. Clara Isabel González & J. Ignacio Conde-Ruiz & Michele Boldrin, 2008. "Immigration and Social Security in Spain," Working Papers 2008-36, FEDEA.
    5. Angel de la Fuente, 2015. "A Simple Model of Aggregate Pension Expenditure," Hacienda Pública Española, IEF, pages 13-50.
    6. Clara I. Gonzalez & José Ignacio Conde Ruiz & Michele Boldrin, 2009. "Immigration and Social Security in Spain," Working Papers 2009-26, FEDEA.

    More about this item

    Keywords

    pensions; projections; communication; uncertainty;

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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