Pension Reform and Political Risk

The Political Economy of Structural Pension Reform

This paper examines the political economy of structural social security reformthe shift from a publicly managed, pay-as-you-go, defined benefit system to one that includes a defined contribution, funded, privately managed pillar. We analyze the connection between the preexisting conditions in a country and the reforms that are likely to succeed and describe some of the strategies that policy-m...

Risk sharing and efficiency implications of progressive pension arrangements

The present paper aims to quantify the welfare effects of progressive pension arrangements in Germany. Starting from a purely contribution-related benefit system, we introduce basic allowances for contributions and a flat benefit fraction. Since our overlapping-generations model takes into account variable labor supply, borrowing constraints as well as stochastic income risk, we can compare the...

The Political Economy of Structural

This paper examines the political economy of structural social security reformthe shift from a publicly managed, pay-as-you-go, defined benefit system to one that includes a defined contribution, funded, privately managed pillar. We analyze the connection between the preexisting conditions in a country and the reforms that are likely to succeed and describe some of the strategies that policy-m...

Political economy of pension reforms: selected general issues and the Polish pension reform case

A politically feasible social security reform with a two-tier structure

Yamada, Tomoaki—A politically feasible social security reform with a two-tier structure This paper investigates the welfare implications and political feasibility of social security reforms with a two-tier structure in Japan. We evaluate social security reforms from two points of view: (i) the ex-ante expected value of future generations, and (ii) whether current generations prefer reform to th...