Home Part 1 DEMOGRAPHIC CHALLENGES AND SUSTAINABILITY OF PUBLIC PENSIONS EXPENDITURES

 

DEMOGRAPHIC CHALLENGES AND SUSTAINABILITY OF PUBLIC PENSIONS EXPENDITURES

 

 

Miloş Marius Cristian

University “Eftimie Murgu” of Resita, Faculty of Economics, This e-mail address is being protected from spambots. You need JavaScript enabled to view it "> This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

Abstract

The demographic changes that are likely to be experienced in the European Union in the coming decades determine governments to find solutions in order to provide the sustainability of social public expendituresThe literature usually focuses on elements which underline the effects of macroeconomic parameters on the size of public pension expenditure: Samuelson (1958), Cass and Yaari (1966), Blanchard (1985), and Gertler (1999). However demographic effects, notably fertility rate and old-age dependency ratio, are also key elemets which affect the sustainability of social security expenditures according to Miroslav Verbic and Rok Spruk (2011). Our econometric testing confirms the high relevance of old age dependency ratio and of the fertility rate upon public pension expenditures, both demographic variables proving to influence the size of public pension expenditure. Considering these results we propose some measures which governments should include in future public policies.

Key words: demography, pensions, public expenditures, sustainability, governments,

JEL classification: H00, H55

 

Citeste articolul