Budgetary challenges, employment and growth in OECD countries.

This project investigates the linkages between fiscal policy (i.e. the level and structure of taxes and government expenditures), pension systems, employment by age, and economic growth within one coherent framework. We study the effectiveness and welfare effects of various policies to bring down government debt, and to raise employment (mainly of older workers), education of the young, and growth. Our main methodology is to construct, solve and simulate dynamic general equilibrium OLG models.