Pension and tax reforms: medium and long-term effects

Overview

This project aims to study the effects of pension and tax reforms across EU countries, with a focus on their macroeconomic, redistributive, and fiscal sustainability impacts in the medium to long term.

EDGE-M3 model

The main tool is the EDGE-M3 overlapping generations (OLG) model. 

The model is designed to study the impact of fiscal reforms, including pension tax reforms. It accounts for individual behavioural responses and simulates both the macroeconomic and distributional effects of reforms. The model is well-suited to conduct welfare analyses of alternative public policy proposals.

The EDGE-M3 model has a number of key strengths for this area of analysis including

• detailed and accurate modelling of the national old-age pension systems, including the accumulation of pension claims

• rich heterogeneity in labour market prospects across the population, allowing for consistent analyses of the impact of simulated reforms across EU countries and population subgroups

   

Explore EDGE-M3 model