The international spillover effects of pension reform
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.
|Keywords||international spillover effects, pension form|
|JEL||International Investment; Long-Term Capital Movements (jel F21), Open Economy Macroeconomics (jel F41), Forecasting and Simulation (jel F47), Social Security and Public Pensions (jel H55), Debt; Debt Management (jel H63)|
|Persistent URL||dx.doi.org/10.1007/s10797-008-9084-x, hdl.handle.net/1765/19978|
|Series||ERIM Article Series (EAS)|
|Journal||International Tax and Public Finance|
Adema, Y, Meijdam, L, & Verbon, H.A.A. (2009). The international spillover effects of pension reform. International Tax and Public Finance, 16(5), 670–696. doi:10.1007/s10797-008-9084-x