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Like in many other OECD countries, the population will age rapidly in Germany during the next decades. This undermines … the demographic transition in Germany. Given the current unfunded pension system, the model first calculates a baseline …
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We model the optimal reaction of a public PAYG pension system to demographic shocks. We compare the ex-ante first best and second best solution of a Ramsey planner with full commitment to the outcome under simple third best rules that mimic the pension systems observed in the real world. The...
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countries. France, Germany, and Italy have large pay-as-you-go pension systems and vulnerable labor markets. At the same time …
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Germany recent reforms that aim at raising retirement age and cutting benefit levels should be complemented by increases in …
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