This article presents the results of increasing some of the lowest pensions accruing to households above 65 years in Spain. The simulations were carried out with an applied general equilibrium model and the results obtained indicate that the resulting increase in the government deficit can be counteracted, without imposing substantial costs to other households, raising either income or value added taxes, the costs are noticeably higher when social security contributions are raised instead. © 2011, Instituto de Estudios Fiscales.
|Journal||Hacienda Publica Espanola|
|Publication status||Published - 1 Dec 2010|
- Applied general equilibrium
- Households' welfare
- Retirement pensions
- Social security contributions
- Value added