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Pension Reforms; Effects on Intergenerational Risk-Sharing and Redistribution

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  • Kruse, Agneta

    (Department of Economics, Lund University)

Abstract

Projections show public pensions to take an increasing share of GDP. This has lead to increased activity in the reform area and resulted in a plethora of reforms ranging from marginal to more radical ones. The former kind has often tried to hold back increasing expenditure by decreasing benefit levels, increasing statutory retirement age etc., while the latter may be exemplified by the Italian or Swedish reforms. The marginal reforms implemented give an impression of being rather haphazard. Accelerating expenditures seem to justify all forms of reduction; if the indexing has been by wages, then the change is to price indexing, and vice versa. In this paper the analysis of reforms will concentrate on the different kinds of risks or threats a pension system is exposed to, notably economic, demographic and political risks and how these risks change with differently designed reforms. The paper will also treat distribution effects of different designs and of the risk exposure. What does the experience of 30 - 40 years of public pension systems tell us about the effects of different designs? Are there any recommendations to be drawn from economic theory?

Suggested Citation

  • Kruse, Agneta, 2000. "Pension Reforms; Effects on Intergenerational Risk-Sharing and Redistribution," Working Papers 2000:10, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2000_010
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    References listed on IDEAS

    as
    1. Feldstein, Martin, 1996. "The Missing Piece in Policy Analysis: Social Security Reform," American Economic Review, American Economic Association, vol. 86(2), pages 1-14, May.
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    4. Agneta Kruse & Pier Luigi Porta & Pia Saraceno, 1997. "Pension Systems and Reforms: a Note on Transition Problems," Working Papers 02, University of Milano-Bicocca, Department of Economics, revised Feb 1997.
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    Cited by:

    1. Kruse, Agneta, 2002. "Ageing Populations and Intergenerational Risk-sharing in PAYG Pension Schemes," Working Papers 2002:18, Lund University, Department of Economics.

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    More about this item

    Keywords

    Social insurance; pensions; intergenerational risk-sharing;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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