Identification of parametric policy options for rehabilitating a pay-as-you-go based pension system: an optimization analysis for Turkey

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dc.citation.epage93en_US
dc.citation.issueNumber2en_US
dc.citation.spage89en_US
dc.citation.volumeNumber8en_US
dc.contributor.authorSayan, S.en_US
dc.contributor.authorKiraci, A.en_US
dc.date.accessioned2016-02-08T10:35:26Z
dc.date.available2016-02-08T10:35:26Z
dc.date.issued2001en_US
dc.departmentDepartment of Economicsen_US
dc.description.abstractPublicly managed pension systems operating on the basis of pay-as-you-go (PAYG) schemes face financial difficulties worldwide. The expenditure-revenue balances of such a system are determined jointly by the selected configuration of system parameters, and interrelated developments in the labour market and demographic structure. In a country where pension coverage is compulsory, these developments occur completely beyond the control of pension system administrators implying that any imbalances that may arise over time can be corrected only by adjusting the existing configuration of contribution and replacement rates, and minimum retirement ages. It can be shown, however, that there are infinitely many configuration of these system parameters that could be used to maintain a selected intertemporal balance between the amounts of contributions collected from workers and pensions paid to the retirees. This paper describes an algorithm developed to identify all possible configurations compatible with this goal and illustrates its use with reference to the pension reform debate in Turkey, a country whose PAYG-based pension system already faces a severe financial crisis despite a relatively young workforce/population. The results indicate that for contribution and replacement rates to remain around their current values, the minimum retirement age must be increased substantially.en_US
dc.identifier.doi10.1080/13504850150204129en_US
dc.identifier.eissn1466-4291
dc.identifier.issn1350-4851
dc.identifier.urihttp://hdl.handle.net/11693/24863
dc.language.isoEnglishen_US
dc.publisherRoutledgeen_US
dc.relation.isversionofhttp://dx.doi.org/10.1080/13504850150204129en_US
dc.source.titleApplied Economics Lettersen_US
dc.subjectMethodologyen_US
dc.subjectPension systemen_US
dc.subjectSocial policyen_US
dc.subjectStrategic approachen_US
dc.subjectWelfare provisionen_US
dc.subjectTurkeyen_US
dc.titleIdentification of parametric policy options for rehabilitating a pay-as-you-go based pension system: an optimization analysis for Turkeyen_US
dc.typeArticleen_US
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