This paper studies the effects of pension reform in a two-country model with country-specific goods. It shows that in the case of dynamic efficiency, a switch from a pay-as-you-go (PAYG) to a more-funded pension scheme leads to an inflow of labour to the reforming country. Reallocation of...

This paper presents a simple condition for optimal coordination of social security policies in case where countries employ different production functions and capital and labour are fully mobile. We find that if both countries run fully funded pension schemes, an allocation of labour and capital...

This paper studies the spillover effects of pension reform in a a two-country two-overlapping-generations model with capital and labour mobility. A stable equilibrium is achieved assuming the presence of an immobile production factor. The long-run effects of pension reform are derived...

The main conclusions of the thesis are that pension reform can be welfare improving if losses and benefits are redistributed by the central government. The possibility of welfare improving social security reform comes from a more efficient use of an immobile production factor, such as land....