Using a model of a two-pillar pension system, designed after and calibrated to the Dutch situation, we explore for the funding ratio of pension funds and the welfare of individuals the implications of replacing nominal debt in the pension fund's portfolio with indexed debt. We consider...

Analyzing 30 OECD‐countries in 1980‐2005, this paper documents the effect of an aging electorate on retirement spending. The first outcome is that an increase in the age of the median voter is not significantly associated with an increase in retirement spending relative to GDP. The second...

There is an urgent need for strategies that alleviate the societal consequences of population ageing. A possible strategy is aiming for compression of morbidity. Some of the initial conditions for a compression of morbidity have been invalidated. The life expectancy has shown a much stronger...

Rising longevity and falling fertility threaten the sustainability of pay-as-you-go pension chemes. This paper shows that maintaining the intergenerational balance in the Dutch pay-as-you-go pension scheme in the face of increased longevity since the introduction of the scheme in 1957 would have...

This paper estimates associations between individual and neighbourhood characteristics and unit nonresponse in a survey of the population aged 50 and over in the Netherlands in 2004. The statistical model includes interviewer fixed effects to control for the non-random distribution of addresses...

The central question of this paper is how international trade and specialization are affected by different designs of pension schemes and asymmetric demographic changes. In a model with two goods, two countries and two production factors, we find that countries with a relatively large unfunded...

This paper provides an explanation as to why population ageing is associated with deflationary processes. For this reason we create an overlapping-generations model (OLG) with money created by credits (inside money) and intergenerational trade. In other words, we combine a neoclassical OLG model...

We analyze the outcome of voting over the contribution to a pay-as-you-go (PAYG) pension system in the presence of financial and demographic shocks. The impact of shocks on pension contributions and benefits replicates major developments of pension systems around the world. A decrease in the...

This study examines the sensitivity of the retirement age decision to standard retirement ages in pension overviews (age anchors) with a self‐constructed survey. Individuals retire later when they are confronted with a higher age anchor. Specifically, their retirement age corresponds to the...

This paper presents a simple condition for optimal asymmetric labour (capital) taxation/subsidization in a two-sector model with logarithmic utilities and Cobb-Douglas production functions, linked to demographic factors: fertility rate and longevity. The paper shows that depending on parameter...