The international spillover effects of pension reform

Abstract

This paper explores how pension reforms in countries with PAYG schemes affect countries with funded systems. We use a two-country two-period overlappinggenerations model, where the countries only differ in their pension systems. We distinguish between the case where a reform potentially leads to a Pareto improvement in the PAYG country, and where this is impossible. In the latter case, the funded country shares both in the costs and the benefits of the reform. However, if a Paretoimproving pension reform is feasible in the PAYG country, a Pareto improvement in the funded country is not guaranteed.Keywords International spillover effects · Pension reform JEL Classification F21 · F41 · F47 · H55 · H63

Efficiency on the Slovak Private Pension Funds Markets and Legislative Changes Effects Analysis

“…With the intergenerational fairness of pension schemes deals Kryger (2011) in his paper Fairness versus efficiency of pension schemes. Adema, Meijdam and Verbon (2009) explores by a two-country two-period overlapping-generations model benefits and costs of countries with a PAYG and funded pension systems under Pareto efficiency condition in European countries. Guardiancich (2011) examined the vision towards a single occupational pension market of European Union's countries proposed by the European Commission's Institutions for Occupational Retirement Provision Directive.…”

PAYG pension systems with capital mobility

“…More recently and in the same vein, Adema, Meijdam, and Verbon (2005) consider a two country setting, one with a FF system and the other with PAYG. They examine a shift in the PAYG country towards FF, and show that the incidence of such a reform depends on which generations bear the cost of the transition.…”