European Parliament Library

Macroeconomic Effects of Public Pension Reforms, Joana Pereira, Philippe D Karam, and Dirk Muir

Abstract
The paper explores the macroeconomic effects of three public pension reforms, namely an increase in retirement age, a reduction in benefits and an increase in contribution rates. Using a five-region version of the IMF‘s Global Integrated Monetary and Fiscal model (GIMF), we find that public pension reforms can have a positive effect on growth in both the short run, propelled by rising consumption, and in the long run, due to lower government debt crowding in higher investment. We also find that a reform action undertaken cooperatively by all regions results in larger output effects, reflecting stronger capital accumulation due to higher world savings. An increase in the retirement age reform yields the strongest impact in the short run, due to the demand effects of higher labor income and in the long run because of supply effects
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; Introduction; I. Pension Spending Trends, Theory and Existing Studies; A. Current and Projected Public Pension Spending; 1. Change in Public Pension Expenditures, 2010-306; B. Theory and Existing Studies; II. The Methodology For Modeling Public Pension Reforms; A. Overview of the Model's Key Features; B. Quantifying Public Pension Reforms; 1. Required Pension Age Extensions across the Regions; C. Caveats and Qualifications; D. Calibration; III. Results: Public Pension Reforms; A. Baseline
Language
eng
Literary Form
non fiction
Copyright
Edition
First edition.
Note
Description based upon print version of record
Physical Description
1 online resource (83 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613869562

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