Pensions Under Ageing Populations and the EU Stability and Growth Pact

26 Pages Posted: 2 Feb 2012

See all articles by Roel M. W. J. Beetsma

Roel M. W. J. Beetsma

University of Amsterdam - Research Institute in Economics & Econometrics (RESAM); European Commission; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Tinbergen Institute; Netspar

Heikki Oksanen

European Union - European Commission; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 2 versions of this paper

Date Written: April 3, 2008

Abstract

This paper explores how the Stability and Growth Pact (SGP) may cope with the future costs of population ageing in the European Union. Clearly, population ageing has forced countries to reform their pension systems, and will continue to do so, both by reducing the generosity of pension arrangements and by switching to funding rather than relying on pure pay-as-you go pension provision. We study how such reforms affect the room for adhering to the SGP, but also how the SGP may induce or hamper the incentives for reform. We will refer to recent literature on ageing and pensions and on the SGP. We also calibrate a simple model for addressing intergenerational equity and discuss its implications for the SGP.

Keywords: Public pensions, population ageing, government budget deficit and debt, European Union Stability and Growth Pact

JEL Classification: H11, H55, H6

Suggested Citation

Beetsma, Roel M. W. J. and Oksanen, Heikki, Pensions Under Ageing Populations and the EU Stability and Growth Pact (April 3, 2008). Available at SSRN: https://ssrn.com/abstract=1997181 or http://dx.doi.org/10.2139/ssrn.1997181

Roel M. W. J. Beetsma (Contact Author)

University of Amsterdam - Research Institute in Economics & Econometrics (RESAM) ( email )

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Tinbergen Institute ( email )

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Netspar ( email )

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Heikki Oksanen

European Union - European Commission ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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