RT Journal Article
T1 The macroeconomic effects of social security contributions and benefits
A1 Gechert, Sebastian
A1 Paetz, Christoph
A1 Villanueva Cortés, Paloma
AB A narrative dataset of legislative social security shocks is constructed for Germany. The dataset covers major legal changes in benefits and contributions from 1970 to 2018. We estimate their macroeconomic effects in a proxy SVAR. The GDP response to a cut in contributions yields a fiscal multiplier of about 0.4 on impact that fades relatively quickly. For benefit increases the impact multiplier is 1.1 and more persistent. The response of other macro variables suggests that benefits work through a strong demand-side channel, while contributions exhibit supply-side effects. Combining the shocks with household data confirms a strong consumption response of beneficiaries.
PB Elsevier
SN 0304-3932
YR 2021
FD 2021
LK https://hdl.handle.net/20.500.14352/97503
UL https://hdl.handle.net/20.500.14352/97503
LA eng
NO Gechert S, Paetz C, Villanueva P (2021) The macroeconomic effects of social security contributions and benefits. Journal of Monetary Economics, 117, 571-584, https://doi.org/10.1016/j.jmoneco.2020.03.012
DS Docta Complutense
RD 18 abr 2025