Aging, Public Pensions and Productivity of Labour: A Simulation of What the Czech Republic Can Afford
| Authors | |
|---|---|
| Year of publication | 2015 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 19th International Conference. Current Trends in Public Sector Research |
| MU Faculty or unit | |
| Citation | |
| Web | http://ctpsr.econ.muni.cz/wp-content/uploads/2015/01/A5_sbornik_2015_bez_znacek.pdf |
| Field | Economy |
| Keywords | Aging Pension system Fiscal policy Labour productivity Simulation Indexation |
| Description | Presented simulation uses the population projection for years 2013-2100 and average government’s revenues and expenditures related to citizen of every year of age. Its goal is to find out how public pensions can grow in relation to the growth of labour productivity without threatening the sustainability of public finances. Simulation is simple and transparent. It concludes that increase in pensions of the same magnitude is much easier when pensions increase much more slowly relative to productivity then when they increase on a similar pace. This nonlinearity can be explained by the demographic structure of the Czech Republic. |
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