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Macroeconomic Effects of Pension Reforms in the Context of Ageing Populations: Overlapping Generations Model Simulations for Tunisia

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  • Tahar Abdessalem

    (Ecole Polytechnique de Tunisie)

  • Houyem Chekki Cherni

Abstract

We have developed a general equilibrium overlapping generations’ model to evaluate the effects of demographic transition in Tunisia and to discuss the impacts of pension reforms. Simulations consider two scenarios: a benchmark scenario (without reforms) and a policy change scenario including a set of pension reforms: contribution rate increase, pensions’ level reduction, rise of the retirement age and finally the introduction of a complementary fully funded system. The latter incorporates a specific hypothesis consisting in differentiated returns for free saving (private) and compulsory (pension funds). Simulation results indicate that population ageing could have a major impact on saving rate, factors prices, and economic growth. However, they also inform that policy reforms could reduce negative effects.

Suggested Citation

  • Tahar Abdessalem & Houyem Chekki Cherni, 2011. "Macroeconomic Effects of Pension Reforms in the Context of Ageing Populations: Overlapping Generations Model Simulations for Tunisia," Working Papers 603, Economic Research Forum, revised 07 Jan 2011.
    • Handle: RePEc:erg:wpaper:603
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    References listed on IDEAS

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    Cited by:

    1. Mouna Ben Othman & Mohamed Ali Marouani, 2016. "Labor market effects of Pension Reform : an overlapping generations general equilibrium model applied to Tunisia," Working Papers 20160001, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    2. Tahar ABDESSALEM & Houyem CHEKKI CHERNI, 2016. "Tunisian Pension System Sustainability: Towards A Multidimensional Reform," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 165-182.

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