Abstract
It is easy to see that broad-based social protection schemes which are financed on a pure pay-as-you-go basis and, at a given point in time, mainly redistribute resources from the young and middle-aged to the old will be put under substantial financial pressure as the process of demographic aging unfolds. Compared to the consequences of aging in other areas, such as labor markets, capital markets, economic development in general and other areas of public finance, its impact on pay-as-you-go social protection schemes is probably best understood. In any case, it has been subject to extensive research and, in many of the countries affected, has already led to policy changes. These may have been more or less fundamental in their nature. Also, they were sometimes enacted at an early stage, sometimes more recently, as it may have taken time to convince politicians and the greater public of the necessity to make some adjustments.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Advisory Board of the Federal Ministry of Economics (Wissenschaftlicher Beirat beim Bundesministerium für Wirtschaft, 1998) Grundlegende Reform der gesetzlichen Rentenversicherung. Report. BMWi, Bonn
Baumann F, Meier V, Werding M (2006) Transferable ageing provisions in individual health insurance contracts. Ifo Working Paper No 31, Munich
Blanchard OJ (1990) Suggestions for a New Set of Fiscal Indicators. OECD Economics Department Working Paper No 79, Paris
Blanchard OJ, Chouraqui JC, Hagemann RP, Sartor N (1990) The Sustainability of Fiscal Policy: New Answers to an Old Question. OECD Econ Stud 15:7–36
Breyer F (1989) On the intergenerational Pareto efficiency of pay-as-you-go financed pension systems. Journal of Theoretical and Institutional Economics 145:643–658
Breyer F, Ulrich V (2000) Gesundheitsausgaben, Alter und medizinischer Fortschritt: Eine Regressionsanalyse. Jahrbücher für Nationalökonomie und Statistik 220:1–17
Cigno A (1993) Intergenerational transfers without altruism: Family, market and state. European Journal of Political Economy 9:505–518
EU Economic Policy Committee (2001) Budgetary challenges posed by ageing populations: the impact on public spending on pensions, health and long-term care for the elderly and possible indicators for the long-term sustainability of public finances. EPC/ECFIN/655/01-EN final, Brussels
EU Economic Policy Committee (2003) The Impact of Ageing Populations on Public Finances: Overview of Analysis Carried out at an EU Level and Proposals for a Future Work Programme. EPC/ECFIN/435/03, Brussels
EU Economic Policy Committee and European Commission (2006) The impact of aging on public expenditure: Projections for the EU-25 member states on pension, health care, long-term care, education and unemployment transfers (2004–2050). European Economy, Special Report No 1/2006. European Commission, DG ECFIN, Brussels
Federal Insurance Authority (Bundesversicherungsamt, 2001) Berechnungen zum Risikostrukturausgleich: Datenzusammenstellungen und Rechnungsergebnisse (Jahresausgleich 2001). On-line database, access via http://www.bva.de
Federal Constitutional Court (Bundesverfassungsgericht, 2001) Ruling of 3 April 2001. BVerfGE 103:242–271
Federal Ministry of Finance (Bundesministerium der Finanzen, 2005) Bericht zur Tragfähigkeit der öffentlichen Finanzen. BMF, Berlin
Federal Statistical Office (Statistisches Bundesamt, 2006) Bevölkerung Deutschlands bis 2050: 11. koordinierte Bevölkerungsvorausschätzung. Statistisches Bundesamt, Wiesbaden
Fenge R (1995) Pareto-efficiency of the pay-as-you-go pension system with intragenerational fairness. Finanzarchiv 52:357–364
Franco D (1995) Pension liabilities: Their use and misuse in the assessment of fiscal policies. EC/ECFIN Economic Papers No 110, Brussels
Franco D (2000) Forecasting the effects of ageing on health expenditure: Note for the Working Group on the Implications of Ageing. ECFIN 609/00, Brussels
Fuchs J, Thon M (1998) Die Schätzung von Potential-Erwerbsquoten, Stiller Reserve und Erwerbspersonenpotential für die alten Bundesländer 1970–1985. IAB-werkstattbericht No 8/1998, pp 3–20
Fuchs J, Thon M (1999) Potentialprojektion bis 2040: Nach 2010 sinkt das Angebot an Arbeitskräften. IAB-kurzbericht No 4/1999, pp 3–6
Fuchs J, Söhnlein D (2003) Lassen sich die Erwerbsquoten des Mikrozensus korrigieren? IAB-werkstattbericht No 12/2003, pp 3–38
Höhn C, Mai R, Micheel F (2007) Demographic change in Germany. In: Hamm I, Seitz H, Werding M (eds) The economic and fiscal consequences of demographic change in Germany. Springer, Berlin Heidelberg New York, pp 9–33 (this volume)
Holzmann R, Palacios R, Zviniene A (2001) Implicit pension debt: Issues, measurement and scope in international perspective. World Bank, Pension Reform Primer, Washington DC
Kommission “Nachhaltigkeit in der Finanzierung der Sozialen Sicherungssysteme” (2003) Nachhaltigkeit in der Finanzierung der Sozialen Sicherungssysteme. Final report. BMGS, Berlin
Leibfritz W, Roeger W (2007) The effects of aging on labor markets and economic growth. In: Hamm I, Seitz H, Werding M (eds) The economic and fiscal consequences of demographic change in Germany. Springer, Berlin Heidelberg New York, pp 35–63 (this volume)
Leibfritz W, Roseveare D, Fore D, Wurzel E (1995) Ageing populations, pension systems and government budgets: How do they affect savings? OECD Economics Department Working Paper No 156, Paris
Missoc (2006) Mutual information system on social protection in the EU member states and in the EEA. Online database, access via http://europa.eu.int/comm/employment_social/social_protection/missoc_en.htm
OECD (2001) Economic outlook No 69 (June 2001). OECD, Paris
OECD (2002) Policy responses to the challenges of ageing populations — a synthesis. DEELSA/ELSA/WP1 (2002) 3, Paris
OECD (2005) Taxing Wages 2004–2005. OECD, Paris
OECD (2006a) OECD Economic outlook No 79 (May 2006) on-line database. Access via http://www.oecd.org
OECD (2006b) OECD Health data 2006. On-line database, access via http://www.oecd.org
Roseveare D, Leibfritz W, Fore D, Wurzel E (1996) Ageing populations, pension systems and government budgets: Simulations for 20 OECD countries. OECD Economics Department Working Paper No 168, Paris
Seitz H (2007) The Impact of Demographic Change on Fiscal Policy in Germany. In: Hamm I, Seitz H, Werding M (eds) The economic and fiscal consequences of demographic change in Germany. Springer, Berlin Heidelberg New York, pp 129–163 (this volume)
Sinn H-W (1990) Korreferat zum Referat von K. Jaeger. In: Gahlen B, Hesse H, Ramser HJ (eds) Theorie und Politik der Sozialversicherung. Mohr (Siebeck), Tübingen, pp 99–101
Sinn H-W (1997) The Value of Children and Immigrants in a Pay-As-You-Go Pension System. NBER Working Paper No 6229
Sinn H-W (2000) Why a funded system is useful and why it is not useful. International Tax and Public Finance 7:389–410
Sinn H-W (2004) The pay-as-you-go pension system as a fertility Insurance and enforcement device. Journal of Public Economics 88:1335–1357
Sinn H-W (2005) Europe’s Demographic Deficit: A Plea For a Child Pension System. De Economist 153:1–45
Sinn H-W, Holzner C, Meister W, Ochel W, Werding M (2006) Redesigning the welfare state: Germany’s current agenda for an activating social assistance. Edward Elgar, Cheltenham Northampton MA
U.S. Social Security Administration (2006) Social security programs throughout the world. Online publication, access via http://www.ssa.gov/policy/docs/progdesc/ssptw/
Van den Noord P, Herd R (1993) Pension liabilities in the seven major economies. OECD Economics Department Working Paper No 142, Paris
Van den Noord P, Herd R (1994) Estimating pension liabilities: A methodological framework. OECD Economic Studies No 23, Paris
Werding M (1999) Pay-as-you go public pension schemes revisited: a draft. Jahrbücher für Nationalökonomie und Statistik 218:491–511
Werding M (2006) Kinderrente und Vorsorgepflicht: Der ifo-Vorschlag zur Lösung der demographischen Krise des Rentensystems. Ifo Schnelldienst 58 (No 7/2006):44–53
Werding M, Blau H (2002) Auswirkungen des demographischen Wandels auf die staatlichen Alterssicherungssysteme: Modellrechnungen bis 2050. Ifo Beiträge zur Wirtschaftsforschung, vol. 8. Ifo Institute, Munich
Werding M, Kaltschütz A (2005) Modellrechnungen zur langfristigen Tragfähigkeit der öffentlichen Finanzen. Ifo Beiträge zur Wirtschaftsforschung, vol. 17. Ifo Institute, Munich
Zweifel P (1990) Ageing: The great challenge to health care reform. European Economic Review 34:646–658
Zweifel P, Felder S, Meier M (1999) Ageing of population and health care expenditure: A red herring? Health Economics 8:485–496
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Werding, M. (2008). Social Insurance: How to Pay for Pensions and Health Care?. In: Hamm, I., Seitz, H., Werding, M. (eds) Demographic Change in Germany. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-68137-3_5
Download citation
DOI: https://doi.org/10.1007/978-3-540-68137-3_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-68135-9
Online ISBN: 978-3-540-68137-3
eBook Packages: Business and EconomicsEconomics and Finance (R0)