This paper investigates public pension funding using a dynamic general equilibrium macroeconomic model (DSGE) that facilitates investigation of distortionary effects of fiscal and pension policy responses to ageing. The model is calibrated to the Finnish economy, which will encounter substantial...

This paper extends Gertler's (1999) tractable overlapping generations model with life-cycle features by allowing for distortionary taxation, demographic transition and stochastic variation in demographic structure. The model is then used to study demographic change in the small open economy of...

The impact of population ageing on public expenditure development in Finland is analysed by Kinnunen and Tuovinen. As in other countries, ageing will lead to an increase in expenditure on pensions and other welfare services. Other than the increase in spending due to the expected demographic...