Pension reforms in Europe: An investigation with a computable OLG world model

Michel Aglietta (1, 2) , Jean Chateau (2) , Jacky Fayolle (3) , Michel Juillard (4, 5) , Jacques Le Cacheux (6, 7) , Gilles Le Garrec (6) , Vincent Touzé (6, 8)

1 UPN - Université Paris Nanterre
2 CEPII - Centre d'Etudes Prospectives et d'Informations Internationales
3 IRES - Institut de recherches économiques et sociales
4 UP8 - Université Paris 8 Vincennes-Saint-Denis
5 CEPREMAP - Centre pour la recherche économique et ses applications
6 OFCE - Observatoire français des conjonctures économiques (Sciences Po)
7 UPPA - Université de Pau et des Pays de l'Adour
8 IEP Lille - Sciences Po Lille - Institut d'études politiques de Lille

This paper presents and briefly discusses the INGENUE model, an international computable overlapping-generations model of the world economy. After a short description of the major features of the baseline scenario of the model for the world economy over the next century, we systematically explore the domestic and international macroeconomic consequences of three scenarios of pension reforms in Europe, as well as their intergenerational distributional effects. We then compare the outcomes in the INGENUE model with those obtained in similar models where Europe is treated either in autarky or as a small, open economy.

Keywords: CGE model; Overlapping generations; Demographics; International capital flows; Pension reforms

Domains: Humanities and Social Sciences; Economics and Finance

Michel Aglietta, Jean Chateau, Jacky Fayolle, Michel Juillard, Jacques Le Cacheux, et al.. Pension reforms in Europe: An investigation with a computable OLG world model. Economic Modelling, 2007, 24 (3), pp.481-505. ⟨10.1016/j.econmod.2006.11.001⟩. ⟨halshs-00754230⟩