The international spillover effects of pension reform

Arbeitspapier

This paper explores how pension reforms in countries with PAYG schemes affect countries with funded systems. We use a two-country two-period overlapping-generations model, where the countries only differ in their pension systems. We distinguish between the case where a reform potentially leads to a Pareto improvement in the PAYG country, and where this is impossible. In the latter case the funded country shares both in the costs and the benefits of the reform. However, if a Pareto-improving pension reform is feasible in the PAYG country, a Pareto improvement in the funded country is not guaranteed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1540

Classification and Topics

• Classification: Wirtschaft ; National Debt; Debt Management; Sovereign Debt ; International Investment; Long-term Capital Movements ; Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation: Models and Applications ; Open Economy Macroeconomics ; Social Security and Public Pensions
• Subject: international spillover effects ; pension reform ; Rentenreform ; Umlageverfahren ; Spillover-Effekt ; Kapitaldeckungsverfahren ; Zwei-Länder-Modell ; international ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Adema, Yvonne ; Meijdam, Lex ; Verbon, Harrie A. A.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/19004
• Last update: 10.03.2025, 11:45 AM CET