Uncertainty in demographic developments lowers expected future welfare levels. Increasing current tax rates and decreasing expected future tax rates may compensate part of the welfare loss that is due to demographic uncertainty. In doing so, the government effectively pursues a precautionary...

This paper presents stochastic simulations, i.e. simulations that combine the CGE model of the Dutch economy GAMMA with stochastic population projections, to quantify uncertainties surrounding the consequences of population ageing for Dutch public finances. The expected increase in the ratio of...

This CPB Discussion Paper addresses two policy questions with respect to public defined benefit (DB) pension schemes. Firstly, does a funded DB pension scheme increase welfare? Secondly, how large is the commitment problem of pension funds after an adverse capital market shock? This CPB...

This paper measures the distortionary and distributional effects of housing subsidies. The results are discussed in the light of the main justifications for subsidising housing, i.e. the merit-good argument, external effects and the distribution motive. Our measurements reveal some patterns of...

For some time now, immigration has been high on the national and international agenda. In addition to the legal, humanitarian and social aspects, the economic impact of immigration is receiving increasing attention. Read also the accompanying <a href="http://www.cpb.nl/node/13393">press release</a>. What costs and benefits of...

This paper assesses how the system of Dutch collective arrangements redistributes between the rich and the poor. It incorporates the full life cycle in the measurements, rather than only the annual effects, and includes a larger part of the arrangements than is usually the case. The...

Conventional Generational Accounting only includes future benefits and burdens from the government. This paper’s contribution is to include past benefits and burdens as well, and in this way to provide a full lifetime account of how much current and future generations benefit from...

To answer policy questions that have intergenerational implications, a computable simulation model should obey four conditions, it should: incorporate long-term demographic developments; include a detailed modelling of the public sector; decompose the population into several generations; account...

The ageing of the Dutch population, resulting in an increase in the number of retirees relative to the working population, has induced a debate about the sustainability of the Dutch first pillar pension scheme (AOW). The system is financed as a pay-as-you-go system. This paper explores possible...

This paper analyses the effect of the corporate tax rate on the cost of capital and investment through two different channels. The first one concerns the fairly standard change in the user cost of capital, which determines a firm's optimal capital stock given that the firm is located in the...