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The Effects of Changing the Age Pension Means Test: A Lifecycle Model Simulation

This report summarises the results obtained by Kudrna (2015) for the effects of hypothetical changes in the existing taper rate of the Age Pension income test.

23. februar 2016

Using an overlapping generations (OLG) model stylised to the Australian economy, Kudrna examined the implications of changing the income taper for lifecycle labour supply, consumption and savings of households, for key macroeconomic and fiscal aggregates and for household welfare.