Front Matter Page
Asia and Pacific Department
Authorized for distribution by Jerald Schiff
Contents
I. Introduction
II. Demographic Change and Associated Expenditure Pressues
III. Applying the Global Fiscal Model to Korea
IV. GFM Simulation Results
V. Policy Options for Achieving the Required Adjustment
VI. Conclusion
Figures
1. Demographic Developments in Korea and the G-7 Countries, 1950-2050
2. Baseline Scenario
3. Pension Reform
4. Pension Reform and Higher Tax Revenues
5. Pension Reform and Lower Expenditures
6. Pension Reform and a Policy Mix
Appendix: Calibrating the GFM for Korea
Appendix Tables
A.1. Korea: Key Macroeconomic Variables in the Initial Steady State
A.2. Korea: Behavioral Assumptions and Key Parameters in the Initial Steady State
References