Resource title

Panels with nonstationary multifactor error structures

Resource image

image for OpenScout resource :: Panels with nonstationary multifactor error structures

Resource description

Increasing longevity causes an upward trend in the dependency ratio in many countries. This raises concerns about the financial sustainability of social security schemes, and reform initiatives and proposals abound. It is shown that a fundamental policy choice inevitably arises since a given social security system cannot be maintained by simply indexing retirement ages and benefits to longevity. The political reform process is analysed using the so-called legislative procedure. When longevity increases, the young generation contributes more, and the old generation faces lower benefits and an retirement age that increases more than proportionally to the increase in longevity.

Resource author

George Kapetanios, Mohammad Hashem Pesaran, Takashi Yamagata

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25834

Resource license

Adapt according to the presented license agreement and reference the original author.