A computational investigation of optimal parameters in pension reform

Abstract

The purpose of this dissertation is to develop a computational framework to identify a set of parametric reform options to rehabilitate publicly run, pay-as-you-go-based pension systems under alternative strategies for reform involving once-and-for-all as well as gradual changes in pension parameters. The techniques developed are applied to the Turkish pension system, which is particularly interesting as it already faces a severe financial crisis despite a relatively young population. The results confirm the need for urgent reform.