Increasing Dependency Ratios, Pensions, and Tax Smoothing

Sadka, Efraim; Tanzi, Vito

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Increasing Dependency Ratios, Pensions, and Tax Smoothing

IMF Working Paper No. 98/129

16 Pages Posted: 15 Feb 2006

See all articles by Efraim Sadka

Efraim Sadka

Tel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Vito Tanzi

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Date Written: September 1998

Abstract

The implication of increasing dependency ratios for pay-as-you-go, defined-benefit pension programs are examined. Modifications aimed at smoothing contributions while maintaining benefits intact are analyzed for both open and closed economies.

Keywords: Dependency ratios, a pay-as-you-go, defined-benefit pension, fully funded, defined-contribution pension, tax smoothing, real exchange rate risk

JEL Classification: H2, F3, J1

Suggested Citation: Suggested Citation

Sadka, Efraim and Tanzi, Vito, Increasing Dependency Ratios, Pensions, and Tax Smoothing (September 1998). IMF Working Paper No. 98/129, Available at SSRN: https://ssrn.com/abstract=882682