Front Matter

Front Matter Page

© 2006 International Monetary Fund

July 2006

IMF Country Report No. 06/250

Republic of Slovenia: Selected Issues

This Selected Issues paper for the Republic of Slovenia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on June 13, 2006. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Republic of Slovenia or the Executive Board of the IMF.

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Front Matter Page

INTERNATIONAL MONETARY FUND

REPUBLIC OF SLOVENIA

Selected Issues

Prepared by J. Fernández-Ansola, Philippe Egoume-Bossogo, Anita Tuladhar, Mercy Mathibe (all EUR), and Todd Mattina and Victoria Gunnarsson (both FAD)

Approved by European Department

June 13, 2006

Contents

  • I. Introduction

  • II. Budget Rigidity and Expenditure Efficiency in Slovenia

    • A. Introduction

    • B. Key Questions and Stylized Facts

    • C. Sources of Budget Rigidity in Slovenia

    • D. Assessing Efficiency as a Benchmark to Guide Expenditure Rationalization

    • E. Conclusion

  • Text Box

    • 1. Summary of Key Questions, Findings, and Recommendations

  • References

  • Data Appendix

  • III. Impact of Aging on Fiscal Sustainability in Slovenia

    • A. Introduction

    • B. Background

    • C. Model Simulations

    • D. Simulation Results

    • E. Conclusions

  • Text Box

    • 1. Long–Run Fiscal Projections: Underlying Data Assumptions

  • References

  • Appendixes

    • I. The Pension System in Slovenia

    • II. Generational Accounting Model

    • III. Slovenia: Age and Gender Profiles, 2003

    • IV. Pension Projections

  • IV. Retirement Incentives in the Pension System in Slovenia

    • A. Introduction

    • B. Literature

    • C. Methodology

    • D. Simulation Assumptions

    • E. Simulation Results

    • F. Alternative Scenarios

    • G. Conclusions and Policy Implications

  • References

  • Appendixes

    • I. Penalty and Bonus Rates

    • II. Tax Rates

    • III. Life Expectancy

  • V. Slovenia: The Tax and Benefit Systems and Incentives to Work

    • A. Introduction

    • B. Labor Participation and Tax and Benefit Systems in Slovenia

    • C. Marginal Effective Tax Rates and Incentives to Work

    • D. Reforms to Increase Labor Participation

    • E. Conclusion and Policy Recommendations

  • References

  • Text Box

    • 1. Slovenia: Taxation and Benefits Related to Job Status

  • Figures

    • 1. Slovenia: Marginal Effective Tax Rates for Selected Individuals

    • 2. Slovenia: Marginal Effective Tax Rates When Taking Up a Jobfrom Joblessness

    • 3. Slovenia: Average Effective Tax Rates for Selected Individuals

  • VI. Trends in Technological and Quality Upgrading and Implications for Export Competitiveness in Slovenia

    • A. Introduction

    • B. Background

    • C. Literature

    • D. Is There Increasing Specialization in High–Technology Products?

    • E. Is There Evidence of Quality Upgrading?

    • F. Empirical Analysis

    • G. Conclusions and Policy Implications

  • References

  • Appendix

    • I. Classification of Export Categories According to Factor Intensity