In this paper, we investigate two fiscal policy options to mitigate fiscal pressure arising from ageing of the Australian population: pension cuts or tax hikes. Using a computable overlapping generations model, we find that while both policy options achieve the same fiscal goal, the...

Volume 1A: The global demography of aging : facts, explanations, future / D.E. Bloom, D.L. Luca -- Macroeconomics, aging, and growth / R. Lee -- Migration and the demographic shift / A. Zaiceva, K.F. Zimmerman -- Global demographic trends : consumption, saving, and international capital flows /...