Macroeconomic consequences of pension reforms in Europe: an investigation with the INGENUE world model

This paper presents some results of the computable, general-equilibrium, multiregional overlapping generations model INGENUE. The purpose of this research is to analyse the issues relating to wealth accumulation and alternative pension reforms in the context of global finance. Hence it focuses on the international capital flows that ought to be induced by differential aging of the various regions of the world, as depicted by the UN demographic projections. The first section exhibits the stylized facts which suggest that a world equilibrium approach is appropriate and leads to an analysis of the convergence processes. The second section lays out the analytical structure of the world model and detail our choices of calibrating. The third section presents a baseline scenario of the world economy in the XXIth century. The fourth and final section analyses European public pension reforms scenarios.