OECD Pension reform: the role of demographic trends and the business cycle
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| Publication date | 03-2023 |
| Journal | European Journal of Political Economy |
| Article number | 102280 |
| Volume | Issue number | 77 |
| Number of pages | 18 |
| Organisations |
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| Abstract |
Using a new real-time dataset from Beetsma et al . (2020) containing all pension reform measures in 23 OECD countries between 1970 and 2017, we demonstrate that, in contrast to what one might a priori expect, the timing of pension reform measures coincides with business cycle shocks and not with current or projected demographic shocks. The OECD-wide demography only explains the general reform trend. We rationalise this finding using a political-economy model with two-sided adjustment costs to explain a lack of response of pension reform measures to changes in demographic indicators. |
| Document type | Article |
| Language | English |
| Published at | https://doi.org/10.1016/j.ejpoleco.2022.102280 |
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