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Generational accounting and Hungarian pension reform

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  • Gál, Róbert I.
  • Simonovits, András
  • Tarcali, Géza

Abstract

The essence of generational accounting is to break down total net contributions in a given year to each cohort and to project this profile into the future. Using additional assumptions on the discount rate and the growth of productivity and population, the per capita net contribution of future generations can be determined, which satisfies the inter-temporal budget constraint. Generational accounts in the Hungarian pension system show that the 1997 reform package significantly reduced the financial tension generated by demographic and institutional factors.

Suggested Citation

  • Gál, Róbert I. & Simonovits, András & Tarcali, Géza, 2001. "Generational accounting and Hungarian pension reform," Social Protection Discussion Papers and Notes 90343, The World Bank.
    • Handle: RePEc:wbk:hdnspu:90343
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    References listed on IDEAS

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    Cited by:

    1. Rocha, Roberto & Vittas, Dimitri, 2001. "Pension reform in Hungary : a preliminary assessment," Policy Research Working Paper Series 2631, The World Bank.
    2. Simonovits, András & Gál, Róbert Iván, 2012. "A magyar nyugdíjrendszer éves hozamrátái [Annual rates of return in the Hungarian pension system]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 963-987.
    3. Heinz Rudolph & Roberto Rocha, 2007. "Competition and Performance in the Polish Second Pillar," World Bank Publications - Books, The World Bank Group, number 6775.
    4. Young Jun Chun & Ji Eun Song, 2018. "Retrospective Generational Accounts for Korea," Korean Economic Review, Korean Economic Association, vol. 34, pages 157-185.
    5. Roberto Rocha & Dimitri Vittas, 2002. "The Hungarian Pension Reform: A Preliminary Assessment of the First Years of Implementation," NBER Chapters, in: Social Security Pension Reform in Europe, pages 365-400, National Bureau of Economic Research, Inc.
    6. László, Csaba, 2018. "A magánnyugdíjpénztári rendszer "elszámolása" ["Reckoning up" the private pension system]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 861-902.

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