Title: Ageing and Intergenerational Inequality in France
Abstract: This paper investigates the impact of demographic shocks and budgetary policy
on the welfare of all generations. For this purpose, we build a large scale OLG model
that captures most crucial variables for the analysis of population shocks consequences in France. We introduce life uncertainty (implying precautionary saving)
and a bequest motive (stimulating wealth accumulation at old age) so as to reproduce realistic wealth profiles per age. The microeconomic foundations provide an
intertemporal indicator of welfare for each generation. Five policy scenarios are
distinguished (indexation of pension through transfer adjustments, imperfect indexation of transfers on growth in order to keep the tax rate constant, the creation of an
implicit fund, increase in the public debt, or increase in the retirement age).Classification JEL: C68, D91,E6, H55, H6, J1
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
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