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Pension spending efficiency

In: Handbook on Public Sector Efficiency

Author

Listed:
  • Boele Bonthuis

Abstract

With declining fertility and rising life expectancy the world’s population is aging. Population aging is one of the driving forces behind rising pension spending, putting pressure on public finances. At the same time the adequacy of pension benefits is still a concern in many countries. To strike the right balance between pension adequacy and fiscal sustainability, pension spending has to be efficient. In other words, for a given level of spending, the value derived by society from the pension system should be maximized while distortions minimized. This chapter explores pension design and design inefficiencies taking into account differing social and economic preferences and level of development.

Suggested Citation

  • Boele Bonthuis, 2023. "Pension spending efficiency," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 8, pages 177-196, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19879_8
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