Voting on Parametric Reforms of the Pay-As-You-Go Pension System

35 Pages Posted: 2 Dec 2008

See all articles by Joao Luis Brasil Gondim

Joao Luis Brasil Gondim

University of Toulouse 1 - Toulouse School of Economics (TSE)

Georges Casamatta

Toulouse School of Economics (GREMAQ-CNRS); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2008

Abstract

We assess the political support for parametric reforms of the Pay-As-You-Go pension system following a downward fertility shock. Using a continuous time overlapping generations model, we show that, for a large class of utility functions, the majority of the population favor a cut in pension benefits over an increase in the contribution rate. Our framework also allows us to evaluate the political support for raising the retirement age and to determine how the timing of the different reforms affect their political support.

Keywords: fertility shock, parametric reforms, Pay-As-You-Go

JEL Classification: D72, H55

Suggested Citation

Gondim, Joao Luis Brasil and Casamatta, Georges, Voting on Parametric Reforms of the Pay-As-You-Go Pension System (October 2008). CEPR Discussion Paper No. DP6993, Available at SSRN: https://ssrn.com/abstract=1308064

Joao Luis Brasil Gondim

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Georges Casamatta (Contact Author)

Toulouse School of Economics (GREMAQ-CNRS) ( email )

Manufacture des Tabacs (bât. F)
21 Allee de Brienne
31000 Toulouse
France

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
6
Abstract Views
749
PlumX Metrics