Economic Analysis Of German Public Pension System Reform

With the ageing of the people,the reform of the public pension system has been long discussed.Countries have tried many ways and the results are very different.German is also faced with the same problem.The discussion about the transition from a Pay-As-You-Go system to a Fully-funded system has in German a long history but the academy has not agreed on a solution.From the reform programs proposed by economic schools and economic organizations,we see that almost all of them have paid special attention on the transition from a Pay-As-You-Go system to a Fully-funded system.Considering the high transition cost,a complete transition from a Pay-As-You-Go system to a Fully-funded system is at present unreasonable,which is also not accepted by the Germany government.The reform in the Pay-As-You-Go scheme is the research subject of this paper.This paper is organized with 3 parts -- 9 chapters as follows:Partsâ… includes Chapter 1,Chapter 2,Chapter3 and Chapter4.Chapter 1 Introduction,the paper introduces its research subject - firstly the background of the research is described.Then,the study method and thesis framework and primary innovative assertions of this paper are discussed.Chapter 2,chapter 3 and chapter 4,establish the academic and practical analysis foundation,from the historical development process and academic research,give a survey on general pension scheme.Among them,the chapter 2 gives a survey on many published studies and examines the main points of their view.Then the Germany studies on the pension system are introduced.Chapter 3 reviews the historical development process of German pension scheme.Chapter 4 studies on the German pension scheme and analyses the reform tries of Kohl-,Schr(?)der- and Merkel-government.On the basic of the study of partâ… ,Partâ…¡(chapter 5,chapter 6,chapter 7 and chapter 8) systemically analyzes the Measures of Germany reform in the Pay-As-You-Go scheme. Using the overlapping generations model,chapter 5 tries to explain the effects on the cost sharing of two methods:constant contribution rate and constant discount rate. Combined with the Germany reform praxis in the last years is the cost sharing in the reform process examined.Chapter 6 discusses the Rationality of the "Riester Rente" with the theory of economy growth.Then the analysis about the subsidies.Considering the Bismarck Model and Beveridge Model is the basic pension model discussed.And on this basis the Germany measures "Basic security demand" is analyzed and evaluated.Chapter 8 studies on other reform suggestions of the German pension system.Partâ…¢(chapter 9 ) summarizes the paper conclusions,as the last chapter of the whole paper.