LEADER 05689oam 22011054 450 001 9910788239403321 005 20230721045624.0 010 $a1-4623-5479-3 010 $a1-4527-8642-9 010 $a1-282-84053-3 010 $a9786612840531 010 $a1-4518-6959-2 035 $a(CKB)3170000000055011 035 $a(EBL)1607848 035 $a(SSID)ssj0000941187 035 $a(PQKBManifestationID)11613890 035 $a(PQKBTitleCode)TC0000941187 035 $a(PQKBWorkID)10975367 035 $a(PQKB)10627107 035 $a(OCoLC)535146985 035 $a(MiAaPQ)EBC1607848 035 $a(IMF)WPIEE2008098 035 $a(EXLCZ)993170000000055011 100 $a20020129d2008 uf 0 101 0 $aeng 181 $ctxt 182 $cc 183 $acr 200 10$aGlobal Aging and Declining World Interest Rates : $eMacroeconomic Insurance Through Pension Reform in Cyprus /$fWilly Hoffmaister, Jaime Guajardo, Mario Catalan 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (42 p.) 225 1 $aIMF Working Papers 300 $a"April 2008." 311 $a1-4519-1413-X 320 $aIncludes bibliographical references (p. 39-40). 327 $aContents; I. Introduction; II. The Model; A. Model Overview; B. Households; C. Firms; D. The Government; E. Equilibrium; F. Balanced Growth Equilibrium and Calibration; G. Demographic Transition; III. Baseline Simulations; A. Scenario 1: Constant World Interest Rates; B. Scenarios 2 and 3: Declining World Interest Rates; IV. Pension Reform Simulations; A. Description of Pension Reforms; B. Simulation Results for Constant Interest Rates; C. Pension Reform as Macroeconomic Insurance; V. Conclusions; Tables; 1. Variable Definition and Notation; 2. Household's Optimization Problems 327 $a3. First Order Conditions-Private Household's Optimization Problem 4. First Order Conditions-Public Household's Optimization Problem; 5. Calibration of the Model; 6. Pension Expenditure Reductions from Reforms; Figures; 1. Labor Skills Profile by Age; 2. Health Care Expenditure by Age Group; 3. Dependency Ratio in Model: Retired over Working Population; 4. Macroeconomic Results-Baseline Scenarios under Constant and Variable Interest Rates.; 5. Macroeconomic Results-Reform Scenarios under Constant and Variable Interest Rates .. 327 $a6. Decomposition of Pension Expenditure-to-GNI-Ratios-Pension Reform and Interest Rate ScenariosReferences 330 3 $aHow will the world-wide decline in real interest rates associated with global aging affect small open economies (SOEs) with aging populations? Lower interest rates will result in higher capital-labor ratios and increased wages; higher wages, in turn, will be passed on to pension benefits, exacerbating aging-related fiscal pressures. The pass-through effect will be stronger if pensions are indexed to nominal wages rather than prices. Using an overlapping generations model, the paper illustrates the interest rates transmission mechanism and its interaction with pension indexation for the case of Cyprus. In addition, the paper evaluates the capacity of pension reforms to insure the economy against long-run movements in world interest rates. It concludes that pension reforms, particularly those that change the indexation of pensions from wages to prices, provide substantial macro-insurance and shock absorption benefits. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/098 606 $aInterest rates$zCyprus$xEconometric models 606 $aPopulation aging$zCyprus$xEconometric models 606 $aPensions$zCyprus$xEconometric models 606 $aLabor$2imf 606 $aPublic Finance$2imf 606 $aDemography$2imf 606 $aSocial Security and Public Pensions$2imf 606 $aNonwage Labor Costs and Benefits$2imf 606 $aPrivate Pensions$2imf 606 $aWages, Compensation, and Labor Costs: General$2imf 606 $aEconomics of the Elderly$2imf 606 $aEconomics of the Handicapped$2imf 606 $aNon-labor Market Discrimination$2imf 606 $aPensions$2imf 606 $aLabour$2imf 606 $aincome economics$2imf 606 $aPopulation & demography$2imf 606 $aPension spending$2imf 606 $aWages$2imf 606 $aPension reform$2imf 606 $aAging$2imf 606 $aPopulation aging$2imf 607 $aCyprus$2imf 615 0$aInterest rates$xEconometric models. 615 0$aPopulation aging$xEconometric models. 615 0$aPensions$xEconometric models. 615 7$aLabor 615 7$aPublic Finance 615 7$aDemography 615 7$aSocial Security and Public Pensions 615 7$aNonwage Labor Costs and Benefits 615 7$aPrivate Pensions 615 7$aWages, Compensation, and Labor Costs: General 615 7$aEconomics of the Elderly 615 7$aEconomics of the Handicapped 615 7$aNon-labor Market Discrimination 615 7$aPensions 615 7$aLabour 615 7$aincome economics 615 7$aPopulation & demography 615 7$aPension spending 615 7$aWages 615 7$aPension reform 615 7$aAging 615 7$aPopulation aging 700 $aHoffmaister$b Willy$01463969 701 $aGuajardo$b Jaime$01463970 701 $aCatalan$b Mario$01463971 712 02$aIMF Institute. 712 02$aInternational Monetary Fund.$bEuropean Dept. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788239403321 996 $aGlobal Aging and Declining World Interest Rates$93673503 997 $aUNINA