IDEAS home Printed from https://ideas.repec.org/p/zbw/fzgdps/37.html
   My bibliography  Save this paper

Measuring accrued-to-date liabilities of public pension systems: Method, data and limitations

Author

Listed:
  • Heidler, Matthias
  • Müller, Christoph
  • Weddige, Olaf

Abstract

This paper introduces the approach of the Freiburg model to quantify accrued-to-date liabilities (ADL) of public pension schemes. The presented framework has been applied to carry out benchmark calculations for 19 EU member states on behalf of the Eurostat/ECB Contact Group on Pensions. We will show that the Freiburg model represents a valuable instrument to calculate pension schemes' ADL on a relatively small data base. Furthermore, limitations and possible extensions of the model will be outlined.

Suggested Citation

  • Heidler, Matthias & Müller, Christoph & Weddige, Olaf, 2009. "Measuring accrued-to-date liabilities of public pension systems: Method, data and limitations," FZG Discussion Papers 37, University of Freiburg, Research Center for Generational Contracts (FZG).
    • Handle: RePEc:zbw:fzgdps:37
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/38838/1/630090971.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barbara Berkel & Axel Börsch-Supan, 2004. "Pension Reform in Germany: The Impact on Retirement Decisions," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(3), pages 393-421, September.
    2. Besendorfer, Daniel & Dang, Emily Phuong & Raffelhüschen, Bernd, 2006. "Schulden und Versorgungsverpflichtungen der Länder: Was ist und was kommt?," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 86(9), pages 572-579.
    3. Reimund Mink & Philippe Rother, 2007. "The statistical recording of implicit pension liabilities and its impact on household wealth and general government obligations," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 1, volume 25, pages 241-251, Bank for International Settlements.
    4. Sheetal K. Chand & Mr. Albert Jaeger, 1996. "Aging Populations and Public Pension Schemes," IMF Occasional Papers 1996/013, International Monetary Fund.
    5. Carone, Giuseppe & Denis, Cécile & Mc Morrow, Kieran & Mourre, Gilles & Röger, Werner, 2006. "Long-term labour productivity and GDP projections for the EU25 Member States : a production function framework," MPRA Paper 744, University Library of Munich, Germany.
    6. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1992. "Social Security and Medicare Policy from the Perspective of Generational Accounting," NBER Chapters, in: Tax Policy and the Economy, Volume 6, pages 129-145, National Bureau of Economic Research, Inc.
    7. Gabriele Semeraro, 2007. "Should financial accounts include future pension liabilities," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 1, volume 25, pages 179-198, Bank for International Settlements.
    8. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    9. Werding, Martin, 2006. "Implicit Pension Debt and the Role of Public Pensions for Human Capital Accumulation: An Assessment for Germany," Discussion Paper 283, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    10. Paul van den Noord & Richard Herd, 1993. "Pension Liabilities in the Seven Major Economies," OECD Economics Department Working Papers 142, OECD Publishing.
    11. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational Accounts: A Meaningful Alternative to Deficit Accounting," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 55-110, National Bureau of Economic Research, Inc.
    12. Berkel, Barbara & Börsch-Supan, Axel, 2004. "Pension Reform in Germany:," Sonderforschungsbereich 504 Publications 04-62, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    13. Holzmann, Robert & Palacios, Robert & Zviniene, Asta, 2004. "Implicit pension debt: issues, measurement and scope in international perspective," Social Protection Discussion Papers and Notes 30153, The World Bank.
    14. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
    15. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1994. "Generational Accounting: A Meaningful Way to Evaluate Fiscal Policy," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 73-94, Winter.
    16. Robert P. Hagemann & Giuseppe Nicoletti, 1989. "Ageing Populations: Economic Effects and Implications for Public Finance," OECD Economics Department Working Papers 61, OECD Publishing.
    17. Monika Queisser & Edward Whitehouse, 2006. "Neutral or Fair?: Actuarial Concepts and Pension-System Design," OECD Social, Employment and Migration Working Papers 40, OECD Publishing.
    18. Franco, Daniele & Marino, Maria Rosaria & Zotteri, Stefania, 2004. "Pension Expenditure Projections, Pension Liabilities and European Union Fiscal Rules," Discussion Paper 231, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    19. Besendorfer, Daniel & Phuong Dang, Emily & Raffelhüschen, Bernd, 2006. "Die Schulden und Versorgungsverpflichtungen der Länder: Was ist und was kommt," Discussion Papers 141, Albert-Ludwigs-Universität Freiburg, Institut für Finanzwissenschaft.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Janusz Jablonowski & Christoph Mueller & Bernd Raffelhüschen, 2011. "A fiscal outlook for Poland using Generational Accounts," NBP Working Papers 85, Narodowy Bank Polski.
    2. Jabłonowski, Janusz & Müller, Christoph & Raffelhüschen, Bernd, 2010. "A fiscal outlook for Poland using generational accounts," FZG Discussion Papers 47, University of Freiburg, Research Center for Generational Contracts (FZG).
    3. Georgios Symeonidis & Platon Tinios & Michail Chouzouris, 2021. "Public Pensions and Implicit Debt: An Investigation for EU Member States Using Ageing Working Group 2021 Projections," Risks, MDPI, vol. 9(11), pages 1-18, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Beltrametti & Matteo Della Valle, 2011. "Does the implicit pension debt mean anything after all?," CeRP Working Papers 118, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    2. Georgios Symeonidis & Platon Tinios & Michail Chouzouris, 2021. "Public Pensions and Implicit Debt: An Investigation for EU Member States Using Ageing Working Group 2021 Projections," Risks, MDPI, vol. 9(11), pages 1-18, October.
    3. Koch, Daniel, 2011. "Wirksame Begrenzung von Staatsverschuldung auf europäischer Ebene," Discussion Paper Series 114, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    4. Beltrametti, Luca & Della Valle, Matteo, 2012. "The Implicit Pension Debt: Its Meaning and an International Comparison - Il debito pensionistico: significato e confronti internazionali," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 65(1), pages 15-38.
    5. Raffelhüschen, Bernd & Hagist, Christian & Moog, Stefan & Vatter, Johannes, 2009. "Ehrbare Staaten? Die deutsche Generationenbilanz im internationalen Vergleich," Argumente zur Marktwirtschaft und Politik 107, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    6. Siebert, Horst, 1997. "Pay-as-you-go versus capital funded pension systems: the issues," Kiel Working Papers 816, Kiel Institute for the World Economy (IfW Kiel).
    7. Klaus Kaier & Christoph Müller, 2015. "New figures on unfunded public pension entitlements across Europe: concept, results and applications," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 865-895, November.
    8. Alan J. Auerbach & Young Jun Chun & Ilho Yoo, 2005. "The Fiscal Burden of Korean Reunification: A Generational Accounting Approach," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 62-97, March.
    9. Christoph Borgmann & Matthias Heidler, 2003. "Demographics and Volatile Social Security Wealth: Political Risks of Benefit Rule Changes in Germany," CESifo Working Paper Series 1021, CESifo.
    10. Raffelhüschen, Bernd & Moog, Stefan & Müller, Christoph, 2010. "Ehrbare Staaten? Die deutsche Generationenbilanz im internationalen Vergleich: Wie gut ist Deutschland auf die demografische Herausforderung vorbereitet?," Argumente zur Marktwirtschaft und Politik 110, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    11. Puhani, Patrick A. & Tabbert, Falko, 2016. "The effects of pension changes on age of first benefit receipt: Regression discontinuity evidence from repatriated ethnic Germans," Labour Economics, Elsevier, vol. 38(C), pages 12-23.
    12. Hupfeld, Stefan, 2009. "Rich and healthy--better than poor and sick?: An empirical analysis of income, health, and the duration of the pension benefit spell," Journal of Health Economics, Elsevier, vol. 28(2), pages 427-443, March.
    13. Hagist, Christian & Moog, Stefan & Raffelhüschen, Bernd & Vatter, Johannes, 2009. "Ehrbare Staaten? Die Ergebnisse der Generationenbilanzierung im internationalen Vergleich," FZG Discussion Papers 34, University of Freiburg, Research Center for Generational Contracts (FZG).
    14. Hagist, Christian & Klusen, Norbert & Plate, Andreas & Raffelhüschen, Bernd, 2005. "Social health insurance: The major driver of unsustainable fiscal policy?," FZG Discussion Papers 1, University of Freiburg, Research Center for Generational Contracts (FZG).
    15. Feldstein, Martin, 1996. "The Missing Piece in Policy Analysis: Social Security Reform," American Economic Review, American Economic Association, vol. 86(2), pages 1-14, May.
    16. Raffelhüschen, Bernd & Hagist, Christian & Moog, Stefan, 2008. "Ehrbarer Staat? Die Generationenbilanz. Update 2008: Migration und Nachhaltigkeit," Argumente zur Marktwirtschaft und Politik 103, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    17. Hagist, Christian & Moog, Stefan & Raffelhüschen, Bernd, 2008. "Ehrbarer Staat? Die Generationenbilanz - Update 2008: Migration und Nachhaltigkeit," FZG Discussion Papers 30, University of Freiburg, Research Center for Generational Contracts (FZG).
    18. repec:noj:journl:v:38:y:2013:p:2 is not listed on IDEAS
    19. Auerbach, Alan J. & Chun, Young Jun, 2006. "Generational accounting in Korea," Journal of the Japanese and International Economies, Elsevier, vol. 20(2), pages 234-268, June.
    20. Christian Hagist & Stefan Moog & Bernd Raffelhüschen & Johannes Vatter, 2009. "Public Debt and Demography - An International Comparison Using Generational Accounting," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(04), pages 29-36, January.
    21. Christian Hagist & Norbert Klusen & Andreas Plate & Bernd Raffelhüschen, 2005. "Social Health Insurance - the Major Driver of Unsustainable Fiscal Policy?," CESifo Working Paper Series 1574, CESifo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:fzgdps:37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iffrede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.