The macroeconomic impact of reforming a PAYG system: The Portuguese case

Maria Teresa Garcia () and Emídio Graça Lopes

International Social Security Review, 2009, vol. 62, issue 1, 1-23

Abstract: Abstract The article analyses the impact of various types of reform options on social security pension system financial sustainability and on a range of macroeconomic variables. The HERPOR model is used to consider the likely effects of parametric reforms of the existing pay‐as‐you‐go system, as well as those of a systemic reform. The article concludes that the former are sufficient to ensure financial sustainability, although they should be accompanied by employment implementation measures. The article concludes that a fully pre‐funded system does not seem to be a viable option for policy‐makers in the redesigning of social security pension systems, due to the high transition costs involved.

Date: 2009
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https://doi.org/10.1111/j.1468-246X.2008.01320.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:intssr:v:62:y:2009:i:1:p:1-23

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