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Pensions and the path to gerontocracy in Germany

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  • Sinn, Hans-Werner
  • Uebelmesser, Silke

Abstract

An impending demographic crisis in Germany calls for fundamental reforms of the pension system. In a democracy, however, reforms require the support of the majority of the electorate. To determine whether the majority is in favour of reforms of the pension system, we calculate for each year the \"indifference age\" as the age of the cohort that is not affected by the reform and the \"median age\" as the age of the politically decisive cohort. Until 2016, a reform can be democratically enforced. After 2016, Germany will be a gerontocracy.

Suggested Citation

  • Sinn, Hans-Werner & Uebelmesser, Silke, 2003. "Pensions and the path to gerontocracy in Germany," Munich Reprints in Economics 19563, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19563
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    References listed on IDEAS

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    1. Breyer, Friedrich, 1994. "The political economy of intergenerational redistribution," European Journal of Political Economy, Elsevier, vol. 10(1), pages 61-84, May.
    2. Hans-Werner Sinn, 1999. "Pension Reform and Demographic Crisis: Why a Funded System is Needed and why it is not Needed," CESifo Working Paper Series 195, CESifo.
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    6. Sinn, Hans-Werner, 2000. "Why a Funded Pension System is Useful and Why It is Not Useful," Munich Reprints in Economics 19859, University of Munich, Department of Economics.
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