Can the aging problem be solved by a higher birth rate? While the popular notion -"if we have too many elderly we need more children in order to compensate for this"- seems plausible, the results of economic theory are ambiguous at best. This paper employs a quantitative macroeconomic simulation...

The paper examines the long-term implications of various reform options on retirement entry decisions and the actual retirement age of older workers. It focuses on the changes in pension legislation since 1992 and the reform options discussed by the German Social Security Reform Commission...