Comprehensive reform of the fiscal and social security system is inevitable in the economy with rapidly aging demographics and a low birth rate. In this project, we build a macroeconomic model founded with the decision making of individuals over the life-cycle and perform quantitative analysis of policy changes in such an economy. Using the demographic projections and incorporating microdata and institutional details into a macro model, we search for desirable fiscal and social security policy and analyze the effects on the aggregate economy and individuals' welfare.
