A Tradeoff between the Output and Net Foreign Asset Effects of Pension Reform

Autor:	Mario Catalan, Nicolas E Magud
Rok vydání:	2017
Předmět:	Economics and Econometrics Pension Labour economics 05 social sciences Small open economy Overlapping generations model Capital (economics) 0502 economics and business Economics Net foreign assets Position (finance) Asset (economics) 050207 economics Retirement age 050205 econometrics
Zdroj:	Open Economies Review. 28:685-709
ISSN:	1573-708X 0923-7992
DOI:	10.1007/s11079-016-9429-5
Popis:	We use an overlapping generations model of a small open economy with perfect capital mobility to evaluate the long-term effects of pension reforms on output and net foreign assets. We compare reforms that achieve similar fiscal targets and show the existence of a tradeoff. Reforms that increase the retirement age have an expansionary effect on output, but a small (and oftentimes) negative effect on the net foreign asset position. In contrast, reforms that cut pension benefits improve the net foreign asset position but reduce output. Only mixed reforms that increase the retirement age and cut pension benefits sufficiently can boost both output and net foreign assets.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::dda05529ad23235fe181a7dfa94bc72b https://doi.org/10.1007/s11079-016-9429-5 Zobrazit plný text záznamu Full text from SpringerLink