Ageing in the Netherlands: Analysing Policy Responses with an Age Model

24 Pages Posted: 15 Feb 2012  

Nick Draper

CPB Netherlands Bureau of Economic Policy Analysis

Harry Ter Rele

CPB Netherlands Bureau of Economic Policy Analysis

Ed Westerhout

CPB Netherlands Bureau of Economic Policy Analysis; University of Amsterdam - Amsterdam School of Economics (ASE)

Date Written: March 30, 2006

Abstract

Understanding the behaviour of economic agents is as important as understanding fiscal institutions. Our model integrates the generational-accounting approach with an applied-general equilibrium setup. The recognition of economic behaviour improves our assessment of the intergenerational consequences of government policies; accounting for fiscal institutions improves our projections of future economic developments. This paper illustrates the benefits from an integrated approach by presenting projections and policy simulations. Two analytical simulations demonstrate the working of the model. A third simulation shows the economic and intergenerational effects of a much discussed policy reform, i.e. a gradual increase of the official retirement age.

Keywords: Ageing, Debt Policies, Generational Accounting, AGE Models

JEL Classification: H60, J11

Suggested Citation

Draper, Nick and Ter Rele, Harry and Westerhout, Ed, Ageing in the Netherlands: Analysing Policy Responses with an Age Model (March 30, 2006). Available at SSRN: https://ssrn.com/abstract=2005201 or http://dx.doi.org/10.2139/ssrn.2005201

Nick Draper (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

Harry Ter Rele

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

Ed Westerhout

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
Amsterdam, North Holland 1018 WB
Netherlands

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

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