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    Economic Ageing and Demographic Change
    (Verlag der österreichischen Akademie der Wissenschaften, 2007-05-06)
    Grafenhofer, Dominik
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    Lutz, Wolfgang
    This paper presents a generalised model of overlapping generations with economic ageing of households. Economic age is defined as a set of personal attributes such as earnings potential and tastes that are characteristic of a person's position in the life-cycle. We separate the concepts of economic age and time since birth by assuming only a small number of different states of age. Agents sharing the same economic characteristics are aggregated analytically to a small number of age groups. The model thus allows for a very parsimonious approximation of life-cycle differences in earnings, wealth and consumption. As an illustration, we apply the model quantitatively to study the impact of demographic change.
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    Aging, Labor Markets and Pension Reform in Austria
    This paper investigates the dynamic consequences of demographic change and various pension reform scenarios for Austria. The analysis is based on a computable overlapping-generations model with life-cycle labor supply, savings, and search unemployment. The public sector is decomposed into general government and an unfunded pension system with a tax - benefit linkage. Our quantitative analysis considers several pension reform scenarios on top of the demographic transition in an aging society. We find that lowering the pension replacement rate and increasing the retirement age can have strong labor-market effects. They strengthen the labor supply both with respect to job search intensity, leading to lower unemployment rates, and with respect to hours worked.
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    The German Perspective on Eastern EU Enlargement
    (Blackwell Publishing Limited, 2001-04-01) ; ;
    Kohler, Wilhelm
    Discusses the German perspective on eastern European Union (EU) expansion. Accounts on the EU expansion of original single market state; Evaluation on the consequences of EU enlargement; Expectation on the benefits and costs of enlargement distribution across present EU member countries.
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    Public Debt and Generational Balance in Austria
    (Springer, 2000-09-01) ;
    Koman, Reinhard
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    Lüth, Erik
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    Raffelhüschen, Bernd
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    Based on Austria's fiscal stance in 1995, we compute the generational accounts for currently living as well as future generations. The results reveal the existence of an intergenerational imbalance in favor of currently living generations. Total public sector liabilities may be more than five times as high as the officially recorded level of public debt. Without any action, future generations would face life-time net taxes that are about 65 percent higher than the tax burden of a current newborn. If the government could fully and permanently retain the expenditure cutting and revenue raising effects of the 1996 fiscal consolidation package and the 1997 pension reform, then it might be able to significantly reduce the intergenerational liabilities. However, enacting both the recent tax reform 2000 and the reform of the family support scheme would increase again the fiscal imbalance and intergenerational bias of fiscal policy in Austria.
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    Probabilistic Aging
    (Volkswirtschaftliche Abteilung, Universität St. Gallen, CESifo WP No. 1680, 2007-01-15) ; ;
    Grafenhofer, Dominik
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    The paper develops an overlapping generations model with probabilistic aging of households. We define age as a set of personal attributes such as earnings potential, health and tastes that are characteristic of a person's position in the life-cycle. In assuming a limited number of different states of age, we separate the concepts of age and time since birth. Agents may retain their age characteristics for several periods before they move with a given probability to another state of age. Different generations that share the same age characteristics are aggregated analytically to a low number of age groups. The probabilistic aging model thus allows for a very parsimonious yet rather accurate approximation of demographic change and of life-cycle differences in earnings, wealth and consumption. Existing classes of overlapping generations models follow as special cases.
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