Macroeconomic Effects of Public Pension Reforms

WPIEA2010297 Image
Price:  $18.00

Author/Editor: Anita Tuladhar, Philippe D Karam, Dirk Muir, Joana Pereira
Release Date: © December, 2010
ISBN : 978-1-45521-178-4
Stock #: WPIEA2010297
English
Stock Status: On back-order

Languages and formats available

EnglishFrenchSpanishArabicRussianChinesePortuguese
PaperbackYes
PDFYes

Description

The paper explores the macroeconomic effects of three public pension reforms, namely an increase in retirement age, a reduction in benefits and an increase in contribution rates. Using a five-region version of the IMF‘s Global Integrated Monetary and Fiscal model (GIMF), we find that public pension reforms can have a positive effect on growth in both the short run, propelled by rising consumption, and in the long run, due to lower government debt crowding in higher investment. We also find that a reform action undertaken cooperatively by all regions results in larger output effects, reflecting stronger capital accumulation due to higher world savings. An increase in the retirement age reform yields the strongest impact in the short run, due to the demand effects of higher labor income and in the long run because of supply effects.

Taxonomy

Economic cooperation , Economic policy , Economic sectors , Euro area , Fiscal policy , Monetary policy , Monetary unions , Pensions , Public sector , Social policy




More publications in this series: Working Papers


More publications by: Anita Tuladhar ; Philippe D Karam ; Dirk Muir ; Joana Pereira