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Effects of the Public Sector downsizing on Social Security and public finance

Author

Listed:
  • Ioannis Vogiatzis

    (University of Patras, Department of Business Administration)

  • Costas Siriopoulos

    (University of Patras, Department of Business Administration)

  • Nikolaos Frangos

    (Athens University of Economics, Department of Statistics)

Abstract

This paper presents the results of the actuarial valuation method Projected Unit Credit (“benefits/years of service”) in order to assess the effects of the public sector downsizing on real economy and social security in Greece, using a prototype data set. We found a social security loss of about 1.3 bn.€, and the effect on the GDP is estimated -13.6 bn.€ (or -7%). We also report a decrease in the direct income by 6.1 bn.€.

Suggested Citation

  • Ioannis Vogiatzis & Costas Siriopoulos & Nikolaos Frangos, 2014. "Effects of the Public Sector downsizing on Social Security and public finance," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(1), pages 53-62, January-M.
    • Handle: RePEc:spd:journl:v:64:y:2014:i:1:p:53-62
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    References listed on IDEAS

    as
    1. Colin Pugh, 2006. "Funding Rules and Actuarial Methods," OECD Working Papers on Insurance and Private Pensions 1, OECD Publishing.
    2. Lawrence Christiano & Martin Eichenbaum & Sergio Rebelo, 2011. "When Is the Government Spending Multiplier Large?," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 78-121.
    3. Constantinos T. Artikis, 2012. "Formulating a Stochastic Discounting Model with Actuarial and Risk Management Applications," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 62(3-4), pages 7-15, July - De.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Projected Unit Credit Method; Public Sector Downsizing; Pensions; Social Security;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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