Abstract:
The aim of this paper is to present the macroeconomic model used to simulate the part of the Uruguayan pension system covered by the Banco de Previsión Social.The model in this paper is a variant of the overlapping generation models that have been extensively used to study fiscal policy in general and social security policy in particular (Auerbach and Kotlikoff, 1987; Falkinghan and Johnson, 1993; Obstfeld and Rogoff, 1996, among others). The contribution of this paper is to adapt the general model to the particular conditions of Uruguay.