Many EU states have adjusted pension benefits or reformed the pension system in reaction to the recent economic crisis, while other member states have postponed this type of adjustments. In this paper we analyse the welfare effects of these different reactions to the crisis in an economic union....

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...