This project aims to analyze the dependence on public and private transfers throughout the life-cycle. We empirically analyze the Slovak case as it is in a high stage of transformation from a single pillar PAYG scheme to a multi-pillar system that combines a PAYG and several capitalized schemes. This transition will in the end very likely decrease the role of public PAYG pillar and thus also decrease the burden on public finances due to demographic ageing. The question is whether this change is enough to offset the effects of an ageing population. We aim to explore this problem not only from the perspective of public transfers, but also from the viewpoint of private transfers as well as time transfers (i.e. time spent by one natural person to the benefit of another natural person, most commonly her family or household member, without a financial reward). We plan to use three modelling tools, namely the national transfer accounts, microsimulation model and overlapping generation model. For correctly addressing this research question, the national transfer accounts require methodological development and the microsimulation model requires significant changes in the current version of the applied DYNREG model. The results will demonstrate what the role of public and private transfers is in financing future consumption throughout the lifecycle.
Project start: 01.07.2020
Project end: 30.06.2024
ID number: APVV-19-0352