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Fiscal effects of the Norwegian pension reform – A micro–macro assessment

Published online by Cambridge University Press:  11 October 2017

DENNIS FREDRIKSEN ,
ERLING HOLMØY ,
BIRGER STRØM  and
NILS MARTIN STØLEN
DENNIS FREDRIKSEN
Affiliation:
Statistics Norway, Oslo, Norway (e-mail: dff@ssb.no)
ERLING HOLMØY
Affiliation:
Statistics Norway, Oslo, Norway (e-mail: erl@ssb.no)
BIRGER STRØM
Affiliation:
Statistics Norway, Oslo, Norway (e-mail: bgs@ssb.no)
NILS MARTIN STØLEN
Affiliation:
Statistics Norway, Oslo, Norway (e-mail: nms@ssb.no)
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Abstract

The main goal of the Norwegian pension reform of 2011 is to improve long run fiscal sustainability, not least through stronger labour supply incentives. We assess to what extent the reform is likely to live up to these intentions. To this end we combine a dynamic microsimulation model, which includes a complete description of the Norwegian population and the pension system, with CGE-modelling of the effects on all government revenues and expenditures. We find that the reform is likely to make a great fiscal impact in the long run, and higher employment plays an important role in this respect.

Keywords

H30H55H62H68O15Pension reformsfiscal sustainabilityincome distributioncomputable general equilibrium modeldynamic microsimulation
Type
Article
Information
Journal of Pension Economics & Finance , Volume 18 , Issue 1 , January 2019 , pp. 88 - 123
Copyright
Copyright © Cambridge University Press 2017 

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