Abstract
| Original language | English |
|---|---|
| Place of Publication | Tilburg |
| Publisher | Macroeconomics |
| Number of pages | 46 |
| Volume | 2002-25 |
| Publication status | Published - 2002 |
Publication series
| Name | CentER Discussion Paper |
|---|---|
| Volume | 2002-25 |
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Keywords
- economic growth
- welfare
- social security
- pensions
- privatization
- ageing
- population dynamics
- overlapping generations
Cite this
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Social Security Reform and Population Ageing in a Two-Sector Growth Model. / van Groezen, B.J.A.M.; Meijdam, A.C.; Verbon, H.A.A.
Tilburg : Macroeconomics, 2002. (CentER Discussion Paper; Vol. 2002-25).Research output: Working paper › Discussion paper › Other research output
TY - UNPB
T1 - Social Security Reform and Population Ageing in a Two-Sector Growth Model
AU - van Groezen, B.J.A.M.
AU - Meijdam, A.C.
AU - Verbon, H.A.A.
N1 - Pagination: 46
PY - 2002
Y1 - 2002
N2 - This paper analyses the effects of reducing unfunded social security and population ageing on economic growth and welfare, both for a small open economy and for a closed economy.The economy consists of a service sector and a commodity sector.Productivity growth only occurs in the latter sector and is assumed to depend positively on its size.It is shown that if old agents mainly demand labour intensive services, a decrease of the pay-as-you-go (PAYG) pension scheme reduces long-run growth and thus welfare in a small open economy, whereas current generations are better off.However, reducing social security raises productivity growth in a closed economy, both in the short and long run. Furthermore, ageing will lead to a lower long-run rate of economic growth in a small open economy, whereas in the short run, the effects depend on the type of ageing and the size of the PAYG-scheme.In a closed economy, the effects of ageing depend on the substitutability of labour and capital.
AB - This paper analyses the effects of reducing unfunded social security and population ageing on economic growth and welfare, both for a small open economy and for a closed economy.The economy consists of a service sector and a commodity sector.Productivity growth only occurs in the latter sector and is assumed to depend positively on its size.It is shown that if old agents mainly demand labour intensive services, a decrease of the pay-as-you-go (PAYG) pension scheme reduces long-run growth and thus welfare in a small open economy, whereas current generations are better off.However, reducing social security raises productivity growth in a closed economy, both in the short and long run. Furthermore, ageing will lead to a lower long-run rate of economic growth in a small open economy, whereas in the short run, the effects depend on the type of ageing and the size of the PAYG-scheme.In a closed economy, the effects of ageing depend on the substitutability of labour and capital.
KW - economic growth
KW - welfare
KW - social security
KW - pensions
KW - privatization
KW - ageing
KW - population dynamics
KW - overlapping generations
M3 - Discussion paper
VL - 2002-25
T3 - CentER Discussion Paper
BT - Social Security Reform and Population Ageing in a Two-Sector Growth Model
PB - Macroeconomics
CY - Tilburg
ER -