Modeling the effects of structural reforms and reform backlashes: The cases of pension and labor market reforms

We build a simple model of reforms and reform backlashes into an overlapping generations model which is extended to the multi-country situation typical for Europe. As a particular feature of our model, we add the distinction between exogenous labor supply components - representing the key results of labor market and pension reform - and endogenous labor supply components - representing household reactions to those reforms and possible reform backlash. (C) 2013 Elsevier B.V. All rights reserved.