The increased budget deficit caused by the privatization of a public pension plan does not imply a relaxation of the stance of fiscal policy. The reform''s impact on the fiscal stance and national saving depends primarily on its effect on the sum of explicit and implicit public debt and on the...

Public pension systems around the world have been criticized in recent years for some serious flaws, including the excessive burden they impose on the public finances and their depressing impact on saving rates. This study analyzes the impact of pension systems and pension reform on saving,...