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Journal Articles
August 1997
Article
European pension systems: a simulation analysis
Type: Journal Articles
Authors: Turalay Kenc and William Perraudin
ISSN: Print: 0143-5671 Online: 1475-5890
Volume, issue, pages: Vol. 18, No. 3, pp. 249-277
JEL classification: H55, J26, J65.

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Pension systems in different countries vary widely in such aspects as the dependence of benefits on earlier labour income, the minimum permitted retirement age and limits on labour supply after retirement. This paper uses a simulation model of a rational, utility-maximising household facing the detailed pension provisions of eight European countries to study microeconomic distortions induced by the different rules and regulations. We examine in particular the impact on savings, labour supply, retirement age decisions and welfare.

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