Anders Karlström, Mårten Palme and Ingemar Svensson 2002
Arbetsrapport 2002 nr. 8
The paper argues that it is not sufficient to restrict calculations of effects of social reforms on individual welfare to income streams, but necessary to model individual behavior and thereafter calculate individual welfare measures. The authors develop a compensating variation (CV) that takes individual choice of retiring as a response to reforms into account, and thereafter is applied on simulations of pension ages based on Swedish panel data.
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