IDEAS home Printed from https://ideas.repec.org/a/pal/imfstp/v34y1987i3p471-502.html
   My bibliography  Save this article

The Impact of Demographic Change on Social Security Financing

Author

Listed:
  • William A. Halter

    (International Monetary Fund)

  • Richard Hemming

    (International Monetary Fund)

Abstract

The relationship between prospective demographic changes and social security tax rates over the long term is examined for four countries--the Federal Republic of Germany, Japan, the United Kingdom, and the United States. Through use of a simple projection model it is shown that, without significant reform, social security programs as constituted in 1980 would have implied substantial increases in social security tax rates by the year 2025 in all four countries. The model is then used to explore how a range of policy options would affect the evolution of tax rates. Recent policy measures taken in each of the countries can be summarized in terms of the model, and it is shown that these measures lead to markedly lower tax rates than with unreformed programs, although the tax rate in Germany will remain high.

Suggested Citation

  • William A. Halter & Richard Hemming, 1987. "The Impact of Demographic Change on Social Security Financing," IMF Staff Papers, Palgrave Macmillan, vol. 34(3), pages 471-502, September.
    • Handle: RePEc:pal:imfstp:v:34:y:1987:i:3:p:471-502
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/3867093?origin=pubexport
    File Function: main text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patxot, Concepció & Rentería, Elisenda & Souto, Guadalupe, 2015. "Can we keep the pre-crisis living standards? An analysis based on NTA profiles in Spain," The Journal of the Economics of Ageing, Elsevier, vol. 5(C), pages 54-62.
    2. Zakir Husain & Mousumi Dutta & Nidhi Chowdhary, 2014. "Is Health Wealth? Results of a Panel Data Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(1), pages 121-143, May.
    3. van Dalen, Hendrik P., 1996. "Pitfalls in the economic analysis of aging," Journal of Policy Modeling, Elsevier, vol. 18(2), pages 157-184, April.
    4. Jorge Soares, 2011. "Social Security: Universal vs. Earnings-Dependent Benefits," Working Papers 11-14, University of Delaware, Department of Economics.
    5. Palacios,Robert J., 1996. "Averting the old-age crisis : technical annex," Policy Research Working Paper Series 1572, The World Bank.
    6. Keith M. Carlson, 1991. "The future of Social Security: an update," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 33-49.
    7. Sayan, Serdar & Kiraci, Arzdar, 2001. "Parametric pension reform with higher retirement ages: A computational investigation of alternatives for a pay-as-you-go-based pension system," Journal of Economic Dynamics and Control, Elsevier, vol. 25(6-7), pages 951-966, June.
    8. Kenc, Turalay & Sayan, Serdar, 2001. "Demographic shock transmission from large to small countries: An overlapping generations CGE analysis," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 677-702, August.
    9. Grech, Aaron George, 1999. "Funded pension schemes: Economic effects and policy implications," MPRA Paper 33615, University Library of Munich, Germany.
    10. Jorge Soares, "undated". "Altruism and Self-interest in a Political Economy of Public Education," Working Papers 130, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:34:y:1987:i:3:p:471-502. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.