aging anxiety

Doug Henwood dhenwood at panix.com
Tue Jan 4 18:27:26 PST 2000


"Aging Anxiety: Much Ado About Nothing?"

BY: M. BUETLER

Tilburg University, Center for Economic Research

GEORG KIRCHSTEIGER

Tilburg University, Center for Economic Research

Paper ID: Tilburg University, Center for Economic Research

(CentER) Working Paper No. 1999-37

Date: 1999

Contact: M. BUETLER

Email: Mailto:monika at kub.nl

Postal: Tilburg University, Center for Economic Research

P.O. Box 90153

5000 LE Tilburg, THE NETHERLANDS

Phone: +31 13 466 2938

Fax: +31 13 466 3066

Co-Auth: GEORG KIRCHSTEIGER

Email: Mailto:G.Kirchsteiger at kub.nl

Postal: Tilburg University, Center for Economic Research

P.O. Box 90153

5000 LE Tilburg, THE NETHERLANDS

Paper Requests:

Contact Ingrid Meeder, Mailto:I.Meeder at kub.nl

Phone:+31.13.466.3050. Postal: CentER, Tilburg University, P.O.

Box 90153, 5000 LE Tilburg, The Netherlands.

ABSTRACT:

Social security systems in most industrialized countries face

severe financial problems due to adverse demographic changes.

The increase in old-age dependency, however, will be spread over

a period of approximately 50 years. The degree of technological

progress necessary to offset the negative effects of aging might

therefore be small. Using models with endogenous labor supply

and with capital accumulation, we demonstrate that under

plausible assumptions, current living standards can be

maintained with a moderate rate of technological progress. The

necessary rate of growth increases both in the size of the

program and in the fraction of agents who exclusively depend on

public pensions in retirement.

JEL Classification: H55, J18, O40



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