This report investigates the effect of population ageing on public health- and long-term care expenditures, public pensions and government finances in EU countries in the projection period 2002-50. The authors specifically consider new insights about the development of demography and health on...

The paper shows the effect of demographic change on per capita burden of financing a PAYG social security system in the standard OLG model with frictional labor markets. Rising longevity and decreasing fertility both induce a rise in the employment level via increased capital accumulation and...