ON THE POSSIBILITY OF PARETO-IMPROVING PENSION REFORM

Damjanovic, TATIANA

Abstract

The aim of this paper is twofold. First, it provides a simple framework for the analyses of the transitions between two steady states with different fiscal policies. This allows us to clarify the existing results on the possibility of Pareto-improving transitions from pay-as-you-go to fully funded pension systems. We show that the reduction in the marginal tax rate is a sufficient condition for the possibility of such pension reforms. Second, the paper investigates the features and the duration of the shortest Pareto-improving pension reform in an open economy.

Citation

Damjanovic, T. (2006). ON THE POSSIBILITY OF PARETO-IMPROVING PENSION REFORM. Manchester School, 74(6), 711-724. https://doi.org/10.1111/j.1467-9957.2006.00525.x

• Journal Article Type: Article
• Online Publication Date: Nov 9, 2006
• Publication Date: 2006-12
• Deposit Date: Oct 24, 2019
• Journal: Manchester School
• Print ISSN: 1463-6786
• Electronic ISSN: 1467-9957
• Publisher: University of Manchester
• Peer Reviewed: Peer Reviewed
• Volume: 74
• Issue: 6
• Pages: 711-724
• DOI: https://doi.org/10.1111/j.1467-9957.2006.00525.x
• Public URL: https://durham-repository.worktribe.com/output/1281719