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Modeling a Social Protection System: The Estonian Case.

Modeling the social protection system is one possibility for analyzing social protection as a whole, interlinking individual spheres, and considering national demographic and economic processes. This presentation discusses the issues related to constructing a basic model for the Estonian social protection system and the possibilities for using it. The main objective of the model discusses prognosticate future incomes and expenditure and simulates the effect of different economic, demographic, and legislative changes on the need for and level of social protection. The model is elaborated based on the empirical analysis of the social protection system, and it is treated as a mapping of relationships between different administrative and financial institutions. Shown as the relationship between the social protection expenditure and sources for covering them, the model is constructed on the basis of an input-output method. The basic model of Estonian social protection system is based on three submodels of inputs: demographic submodel and labor market, macroeconomic submodel and economic development, and social protection system submodel. A subject of discussion is how much can a balanced model motivate social policy decisions in order to ensure a more efficient use of limited national resources for social protection. (JEL 010)

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Title Annotation:International Pages
Comment:Modeling a Social Protection System: The Estonian Case.(International Pages)
Publication:International Advances in Economic Research
Article Type:Brief Article
Geographic Code:4EXES
Date:Nov 1, 2000
Previous Article:Unemployment in Estonia and Economic Policies.
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