Welfare Analysis of Pension Reforms in an Ageing Japan

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

This paper uses a computable general equilibrium model with overlapping generations to explore the effects of different public pension schemes on economic welfare, and intergenerational and intragenerational equity. Besides the benchmark case based on the 2004 public pension reform, the present paper considers two alternative reforms: financing the basic pension benefit through a consumption tax, and eliminating the earnings-related pension benefit. The simulation results suggest that even the consumption-tax financing of only the basic pension, namely, the combination of both reforms, might not improve overall economic welfare, although it increases economic output by inducing capital formation.

Original languageEnglish
Pages (from-to)452-483
Number of pages32
JournalJapanese Economic Review
Volume64
Issue number4
DOIs
Publication statusPublished - Dec 2013

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Pension reform
Welfare analysis
Japan
Pensions
Financing
Consumption tax
Public pensions
Economic welfare
Computable general equilibrium model
Economics
Overlapping generations
Capital formation
Benchmark
Equity
Simulation
Pension scheme

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Welfare Analysis of Pension Reforms in an Ageing Japan. / Okamoto, Akira.

In: Japanese Economic Review, Vol. 64, No. 4, 12.2013, p. 452-483.

Research output: Contribution to journalArticle

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