Working Paper No. 548

Pensions and Contemporary Socioeconomic Change

Published: February 21, 2001Pages: 32Keywords: Pension Reforms; Social Economic Change; Redistribution among Generations JEL-codes: H55

Pensions and Contemporary Socioeconomic Change Assar Lindbeck


The paper discusses the consequences for the functioning of different pension systems of various types of socioeconomic changes, mainly demographic developments, variations in productivity growth and changes in real interest rates. Two of the pension systems have exogenous and four have endogenous contributions rates. I analyze both marginal and radical pension reforms for the purpose of making pension systems more stable, avoiding arbitrary redistributions between generations and dealing with increased heterogeneity of the population in terms of family structure and international mobility. The advantages of combining PAYGO and actuarially fair systems are pointed out.

Assar Lindbeck

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Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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