Aging, (Pension) Reforms and the Shadow Economy in Southern Europe
Daniel Baksa () and
Zsuzsa Munkacsi ()
Additional contact information
Daniel Baksa: Central European University
No 32, Bank of Lithuania Working Paper Series from Bank of Lithuania
Southern Europe is currently experiencing a double-whammy: high levels of government debt coupled with a rapidly aging population. Thus, the consolidation of (pension) budgets seems inevitable. In this paper we examine the short- and long-run macroeconomic e ects of public old-age pension reforms and other scal policies under conditions of population aging. To do so, we calibrate OGRE, a New Keynesian model with overlapping generations, unemployment and an underground sector to match annual data on Portugal and Spain. Our main nding is that a retirement-age increase is the least harmful policy with respect to long-run output. However, we raise some doubts about the feasibility of implementing this policy.Classification-JEL: E24, E26, H55, J11, J46Keywords: population aging, public old-age pension reforms, pay-as-you-go, fully funded, shadow economy, informal employment, government debt, New Keynesian model, overlapping generations, demography, unemployment, retirement ageLength: 71 pages
New Economics Papers: this item is included in nep-age, nep-dge, nep-eec, nep-iue, nep-mac and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://www.lb.lt/en/publications/no-32-aging-pens ... y-in-southern-europe Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (https://www.lb.lt/en/publications/no-32-aging-pension-reforms-and-the-shadow-economy-in-southern-europe [302 Found]--> http://www.lb.lt/ [301 Moved Permanently]--> https://www.lb.lt/ [302 Found]--> http://www.lb.lt/ [301 Moved Permanently]--> https://www.lb.lt/ [302 Found]--> http://www.lb.lt/ [301 Moved Permanently]--> https://www.lb.lt/ [302 Found]--> http://www.lb.lt/)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:lie:wpaper:32
Access Statistics for this paper
More papers in Bank of Lithuania Working Paper Series from Bank of Lithuania Bank of Lithuania Gedimino pr. 6, LT-01103 Vilnius, Lithuania. Contact information at EDIRC.
Bibliographic data for series maintained by Povilas Lastauskas ().