Macroeffects of combined indexation

András Simonovits
Additional contact information
András Simonovits: Hungarian Academy of Scientists

Chapter Chapter 14 in Modeling Pension Systems, 2003, pp 139-143 from Palgrave Macmillan

Abstract: Abstract The indexation of benefits to wages has attractive features (see Chapter 4 above). There is an international trend, however, to replace wage indexation with price indexation or, as a compromise, with combined wage and price indexation (compare the Hungarian pension reform in Chapters 4, 9 and 18). In this Chapter, we shall show that this change yields only a temporary slow-down in the growth of total pension expenditures, and results in a step-by-step permanent relative deprivation of the older cohorts vis-a-vis workers. (János Réti called my attention to this apparently overlooked phenomenon and I express my gratitude to him here.)

Keywords: Pension System; Pension Reform; Combine Indexation; Wage Indexation; Longevity Risk (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-3845-9_15

Ordering information: This item can be ordered from
http://www.palgrave.com/9781403938459

DOI: 10.1057/9781403938459_15

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().