http://repub.eur.nl/res/aut/3218/ List of Publications en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/6616/ 2004-09-10T00:00:00Z This paper argues that the conventional definition of the elasticity of complementarity is not well suited to deal with the case of increasing returns. It proposes a slightly different formula, that uses a distance function formulation instead of a production function. The proposed definition coincides with the Hicksian measure in case the production function displays constant returns. It is more informative in case returns to scale are not constant, as it disentangles entry effects and substitution effects of factor supplies. The new definition is also preferable in that it is fully symmetric with the definition of the elasticity of substitution. http://repub.eur.nl/res/pub/1091/ 2004-01-06T00:00:00Z This paper investigates the age-dependency of participation and unemployment by integrating job search with intertemporal optimizing behavior of finitely-lived households. We find that search frictions and tax rates distort the decisions of older workers to a much larger extent than that of young workers. This finding provides an explanation of the observed fall of participation rates of elder workers as a result of the post-war increase in tax rates and replacement rates. We show that the age pattern of search unemployment does not match observed unemployment and we propose a new concept of ‘voluntary’ unemployment that agrees well with observations. http://repub.eur.nl/res/pub/838/ 2003-09-08T00:00:00Z The Netherlands will be confronted with an almost doubling of the old-age dependency ratio over the next forty years. The costs of the ageing population are primarily reflected in larger expenditures on pensions and health care. This paper explores the consequences of ageing in a baseline scenario simulated with a dynamic general equilibrium model. The sensitivity of the results are discussed under alternative scenarios for the interest rate and population projections. Finally, the effects of two types of reform measures in the pay-as-you-go social security system are explored. http://repub.eur.nl/res/pub/839/ 2003-09-08T00:00:00Z This paper studies the effects of the imminent ageing of the population on economic growth and the distribution of welfare in the Netherlands. It shows that in the current system of social security ageing leads to a considerable welfare loss for future generations. It discusses the effect of reform measures in the pay-as-you-go social security system. It shows that a cut in PAYG pensions is efficiency-improving, but hurts the lower income groups of current generations. This effect can be ameliorated by a debt-financed cut in indirect taxes. In that case the negative welfare effect of the reform for current generations is smaller than the redistribution caused by the demographic shift itself. http://repub.eur.nl/res/pub/10901/ 2003-09-01T00:00:00Z The costs of population ageing are primarily reflected in larger expenditures on pensions and health care. This paper explores the consequences of ageing for the Netherlands in a baseline scenario simulated with a dynamic general equilibrium model. We discuss the sensitivity of the results under alternative projections for population ageing. We explore also the effects of three types of social security reform: a reduction in benefits, an increase in the retirement age and smoothing of the public pension premium over time. We find that the welfare effects of ageing and the reforms are substantial. http://repub.eur.nl/res/pub/6712/ 2003-03-31T00:00:00Z This paper investigates the age-dependency of participation and unemployment by integrating job search with intertemporal optimizing behavior of finitely-lived households. We find that search frictions and tax rates distort the decisions of older workers to a much larger extent than that of young workers. This finding provides an explanation of the observed fall of participation rates of elder workers as a result of the post-war increase in tax rates and replacement rates. We show that the age pattern of search unemployment does not match observed unemployment and we propose a new concept of 'voluntary' unemployment that agrees well with observations. http://repub.eur.nl/res/pub/10948/ 2003-01-01T00:00:00Z De vergrijzingsproblematiek betreft alle Westerse landen. De gecombineerde effecten van een lager geboortecijfer, een lager sterftecijfer en de naoorlogse geboortegolf leiden ertoe dat de bevolkingsopbouw aan het veranderen is. Volgens het CBS zal het bevolkingsaandeel van ouderen (met een leeftijd van 65 jaar of hoger) de komende jaren stijgen van 13% naar ruim 22%. Deze verandering zal zijn weerslag hebben in de hele economie, en bijzonder gevoeld worden in de pensioensector. http://repub.eur.nl/res/pub/10946/ 2000-01-01T00:00:00Z