This paper analyses the effects of cuts in the marginal tax rates on income from labour and capital on the macroeconomy and on the intergenerational distribution of welfare in a small open economy. For this purpose we set up a computable general equilibrium model incorporating overlapping...

The study identifies three groups of problems in the Lithuanian pension environment: fiscal problems, poverty of retired people, and problems related to working and saving incentives. The future of the current pension system is suspect, as the population share of the elderly is increasing and...

This paper examines the distributional consequences of public debt reduction achieved through spending cuts. Under the assumption that public goods and transfers are relatively more valuable to the poor, our calculations indicate that the elderly poor stand to lose from such policies. Debt...