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...

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 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...

The present paper aims to quantify efficiency properties of flat and earnings-related pay-as-you-go financed social security systems of various institutional designs in order to identify an optimal pension design. Starting from a benchmark economy without social security, we introduce...

The present paper aims to quantify efficiency properties of real world social security systems of various institutional designs in order to identify an optimal pension design. Starting from a benchmark economy without social security, we introduce alternative pension systems and compare the...

The present paper studies the efficiency properties of means-tested pay-as-you-go financed social security systems. Starting from a benchmark economy without social security, we introduce pension systems of various institutional designs and compare the costs arising from liquidity constraints as...

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...

This paper examines stochastic or ‘value based’ generational accounting as a method to assess the intergenerational redistributive impact of pension reform. The analysis is applied to three policy changes to the regulation of Dutch occupational pensions during the years 2012 and 2013 that...

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...