Pension Reform in Brazil: Transitional Issues in a Model with Endogenous Labor Supply
Brazilian PAYG system has been under financial stress and needs to be reformed. I use a computational general equilibrium model, with 55 overlapping generations to simulate macroeconomic and welfare impacts of alternative social security reforms. Transition turns out to have quite different redistributional effects for the generations involved depending on which tax is used to finance it. Under a variety of possible transitional schemes, there is no tax path that is strictly preferred by every generation.
|Date of creation:||25 Nov 2005|
|Date of revision:|
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