Book Review - Tax and benefit policies in the enlarged Europe: assessing the impact with microsimulation models

book review

The future development of living standards of the retirees in Belgium. [:] an application of the static microsimulation model station

This paper develops a dynamic microsimulation model with static ageing to assess the consequences of the assumptions and hypothesis of the Federal Planning Bureau on the prospective adequacy of pensions. A less technical and shorter version of this text was published as Gijs Dekkers, 2000, L’évolution du pouvoir d’achat des retraités: Une application du modèle de microsimulation STATION. in: Pestieau, P., L. Gevers, V. Ginsburgh, E. Schokkaert, B. Cantillon, Réflexions sur l’avenir de nos Retraites, Garant, Leuven/Apeldoorn (also available in Dutch).microsimulation; ageing; social hypotheses; poverty; inequality

On the impact of indexation and demographic ageing on inequality among pensioners

Possible future trends in the development of pension adequacy are usually simulated using dynamic microsimulation models. These models are very complex and include many different processes. This, and the many individual interactions, makes it difficult to see which procedures and relations underlie the observed simulation results. Hence, the discussion of simulation results, and especially trends, tend to be based on ‘common sense reasoning’ using only a few fundamental parameters. If this strategy to explain the simulation results from a dynamic MSM is valid, then a simple stylized model describing these fundamental relations should be able to capture the long-term trends in inequality among pensioners. The results of the stylized model could then be comparable to those of a dynamic microsimulaton model. This strategy also allows to validate dynamic microsimulation models. This paper uses such a simple model to show some general relations between indexation, retirement age, demographic ageing and the inequality of pensions. The results of this stylized model are then compared to simulation results of a dynamic MSM, in this case MIDAS Belgium.microsimulation, ageing, social hypotheses, poverty, inequality

Are the old poor? A discussion and some cursory evidence

Many of us associate old-age and retirement with vulnerability, both physical and economical. Even though the position of the group of elderly as a whole has improved considerably and is now no less than that of younger cohorts , poverty among elderly remains an issue worth of analyzing, also since they have fewer possibilities to recover from a drop in income, for example by changing their labour market behaviour. This paper hopes to give cursory evidence on the poverty position of the elderly, while discussing some recent research.poverty

The financial implications of working longer: An Application of a Micro-Economic Model of Retirement in Belgium

In this paper, the costs and benefits associated with postponing retirement are simulated in a standard simulation model for Belgium, using the approach of Stock and Wise (1990). Unlike earlier microsimulation-based applications of this approach, such as Gruber and Wise (1999, 2004), this model does not take a representative sample as the point of departure, but simulates the costs and benefits of postponing retirement for four fictitious employees, representing male and female white- and blue-collar workers. While confirming conclusions drawn by other authors, this model allows for the separation of specific retirement schemes, and of the effect of different fiscal regimes for those retired and working. It is shown that differences between retirement schemes show up in differences in replacement rates and by whether or not the retirement benefit is a function of career length. Furthermore, advantageous fiscal regulations for the retired have a strong impact on the implicit costs of postponing retirement.option value; peak value; pension schemes; replacement rates

Taking two to tango: the joint prospective assessment of pension sustainability and adequacy in Belgium

This presentation discusses how such integrated approach using shared demographic and macroeconomic assumptions has been developed in Belgium. It describes the dynamic microsimulation model MIDAS, highlighting how it aligns to the simulation results of the semi-aggregate model MALTESE. The authors would like to thank Jean-Maurice Frère and Michel Englert for their valuable comments on a previous version of this paper.Pensions; adequacy; sustainability; microsimulation

Note - The European Network for Dynamic Microsimulation (EURODYM) – A vision and the state of affairs

This paper presents plans to initiate a European network for dynamic microsimulation, one of whose tasks will be to facilitate and stimulate exchange of research ideas and researchers. Also, it aims to serve as a platform for researchers to bid for and generate funds to enhance the development and use of the dynamic microsimulation models, with a particular focus on research funds available in Europe. The comments and support from the microsimulation community have been received during the European workshop on dynamic microsimulation modelling in Brussels (2010) and also during the 3rd General Conference of the International Microsimulation Association in Stockholm (2011). Further comments are requested and gratefully received.dynamic microsimulation, network

Guest Editorial - Special Issue on ‘Taxation And Microsimulation’

This special issue is one of several reporting on papers presented during the 2nd General Conference of the International Microsimulation Association (IMA): “Microsimulation: Bridging Data and Policy”, Statistics Canada, Ottawa, Canada, June 8th to 10th, 2009. The papers all deal with tax issues and are selected on the basis of innovativeness and relevance for all IJM readers.

Working Paper 15-05 - De financiële implicaties van langer werken : een Micro-Economisch Pensioenmodel (MEP)

Pensions, Microsimulation