This paper reviews the latest developments in the political economy literature that are concerned with the consequences of population aging, with a primary focus on the threat posed by aging to the continued existence of public pension programs in developed countries. After briefly recalling why...

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...