We examine the optimal policy response to an exogenously given demographic shock. Such a shock affects negatively the financing of retirement pensions, and we use optimal fiscal policy in order to determine the optimal strategy of the social security administration. Our approach provides...

The authors consider a transitory demographic shock that affects negatively the financing of retirement pensions-that is, workers either would have to pay more or retirees would receive less. In contrast to the existing literature, the authors endogenously determine optimal policies rather than...

In this paper we show that the generational accounting framework used in macroeconomics to measure tax incidence can, in some cases, yield inaccurate measurements of the tax burden across age cohorts. This result is very important for policy evaluation, because it shows that the selection of tax...

The choice of the intertemporal discount rate affects the measurement of the tax burden of different age cohorts. Small changes in the discount rate affect not only the magnitude of the measured changes, but also the ranking of policies using that metric. The authors illustrate this problem in...

El presente trabajo analiza desde un punto de vista cuantitativo, mediante un modelo de equilibrio general de generaciones sucesivas, los efectos sobre la economia espanola de eliminar el actual sistema de Seguridad Social e implantar uno de capitalizacion. Ela analisis considera el proceso de...

This paper uses a overlapping generation general equilibrium model to study a reform of the social security system, going from an unfunded to a funded system. We also analyze the effects of this reform on the incentives of young generations to acquire skills. the main objective is to evaluate...