China’s Policy Instruments : Tax Reduction, Retirement Prolonging and Welfare Changes
By Peilin Yang
China is facing a series of significant debt problems. We have studied the changes in debt and benefits under different policy instruments under the framework of large-scale OLG. Under the three retirement ages, as the retirement age increases, the maximum increase in benefits is 17.98%, and the debt is 75.69%. Under the five tax rates, the optimal tax rate is 28%, the maximum increase in benefits is 22.65%, and the maximum debt ratio is 75%.
Source: SSRN
