Showing 1 results for Dsge Model.
Ali Siami, Alireza Erfani, Seyad Mohammad Mostolizadeh,
Volume 14, Issue 51 (5-2023)
Abstract
The aim of this paper is to examine the impact of parametric reforms on the financial sustainability of the Social Security Organization, the largest social insurance organization in the country. To this end, an overlapping generations general equilibrium model is employed. The issue is analyzed through four different scenarios. The results show that in the first scenario, increasing life expectancy by 3 years without changing the retirement age will increase the ratio of expenditures to resources of the Social Security Organization by approximately 2%. In the second scenario, increasing the retirement age by 2 years and reducing life expectancy by 1 year will decrease the ratio of expenditures to resources by about 0.8%. In this case, the share of retirees' consumption in production and the labor force participation rate will decrease by 5% and 3%, respectively. In the third scenario, raising insurance premiums by 2% will not cause significant changes in the ratio of expenditures to resources due to a reduction in labor supply. Finally, in the fourth scenario, increasing both the retirement age and life expectancy by 2 and 3 years, respectively, will raise the ratio of expenditures to resources of the Social Security Organization by approximately 2.4%.
