The Stockholm Agenda: A Welfare Perspective

Portuguese Ministry of Finance Working Paper No. 39

59 Pages Posted: 15 Nov 2005

See all articles by Pedro G. Rodrigues

Pedro G. Rodrigues

CAPP and ISCSP, Universidade Técnica de Lisboa

Date Written: September 2005

Abstract

With population aging fiscal budgets in the European Union will come under significant strain. To tackle this problem, the Stockholm Agenda prescribes increasing employment rates, accelerating fiscal consolidation, and furthering entitlement reform. Using a generational accounting model with a detailed welfare analysis, this paper assesses this three-pronged strategy. It finds that, to enhance welfare, fiscal adjustment strategies need to be country-specific, taking into account differences in preferences, technology, and the state of public finances. A three-pronged strategy does not appear well-suited for these countries, but increasing labor utilization through higher employment rates is central.

Keywords: Europe, aging, generational accounting, welfare

JEL Classification: H69

Suggested Citation

Rodrigues, Pedro G., The Stockholm Agenda: A Welfare Perspective (September 2005). Portuguese Ministry of Finance Working Paper No. 39. Available at SSRN: https://ssrn.com/abstract=683903 or http://dx.doi.org/10.2139/ssrn.683903

Pedro G. Rodrigues (Contact Author)

CAPP and ISCSP, Universidade Técnica de Lisboa ( email )

Rua Almerindo Lessa
Lisboa, 1300-663
Portugal
+351213619430 (Phone)
+351213619442 (Fax)

HOME PAGE: http://10envolver.wordpress.com

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