Gonzalez-Eiras, Martin; Niepelt, Dirk - C.E.P.R. Discussion Papers - 2007
We analyze the effect of the projected demographic transition on the political support for social security, and … predict population ageing to lead to higher social security tax rates, a rising share of pensions in GDP, but eventually lower … social security benefits per retiree. The response of equilibrium tax rates to demographic shocks reduces old-age consumption …