The Budgeting and Economic Consequences of Ageing in the Netherlands

29 Pages Posted: 25 Jan 2002

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

Leon J.H. Bettendorf

Erasmus University Rotterdam (EUR)

Peter Broer

Tilburg University - CentER, Faculty of Economics and Business Administration; CPB Netherlands Bureau for Economic Policy Research

Date Written: December 2001

Abstract

The costs of population ageing are primarily reflected in larger expenditures on pensions and health care. This paper explores the consequences of ageing for the Netherlands in a baseline scenario simulated with a dynamic general equilibrium model. We discuss the sensitivity of the results under alternative projections for population ageing. We explore also the effects of three types of social security reform: a reduction in benefits, an increase in the retirement age and smoothing of the public pension premium over time. We find that the welfare effects of ageing and the reforms are substantial.

JEL Classification: H20, H50, E62

Suggested Citation

Beetsma, Roel M. W. J. and Bettendorf, Leon J.H. and Broer, Peter, The Budgeting and Economic Consequences of Ageing in the Netherlands (December 2001). Available at SSRN: https://ssrn.com/abstract=296364

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

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

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Centre for Economic Policy Research (CEPR)

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Tinbergen Institute ( email )

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Leon J.H. Bettendorf

Erasmus University Rotterdam (EUR) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 4081808 (Phone)

Peter Broer

Tilburg University - CentER, Faculty of Economics and Business Administration ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://center.uvt.nl/staff/broer/

CPB Netherlands Bureau for Economic Policy Research ( email )

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2508 GM The Hague, 2585 JR
Netherlands
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+31 70 33 83 350 (Fax)

HOME PAGE: http://www.cpb.nl/eng/general/org/homepages/dpb/

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