Pension Reform, Capital Markets and the Rate of Return

Börsch‐Supan, Axel; Heiß, Florian; Ludwig, Alexander; Winter, Joachim

doi:10.1111/1468-0475.00077

Cited by 62 publications

(39 citation statements)

References 60 publications

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“…Noting that large-scale demographic ageing may also cause problems for funded schemes, but has a negative first-order effect only on unfunded pensions (Brooks 2000;Börsch-Supan et al, 2003;Fehr et al, 2005), there have been intensive discussions as to whether funding offers a meaningful option for dealing with the ageing problem.…”

Section: Iii2 Switching From Db To Ndcmentioning

confidence: 99%

Ageing and the welfare state: securing sustainability

Meier¹,

Werding²

2010

Oxford Review of Economic Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Over the next four decades, increasing old-age dependency ratios exert an enormous upward pressure on welfare spending in most developed countries. As this is mainly due to existing unfunded public pension schemes, many countries have embarked on far-reaching reforms in this area, strengthening actuarial fairness, modifying indexation rules, adding elements of prefunding and, last but not least, attempting to extend the period of economic activity. Efforts to contain costs may also be relevant with regard to public expenditure on health and long-term care but, thus far, no country has started to really deal with these issues. Still, some countries have made substantial progress in securing the long-term sustainability of their welfare systems. What remains to be considered is re-constructing the system of intergenerational transactions as a potential way of removing disincentives to raise children and invest in their human capital in the long run. Terms of use: Documents inJEL-Code: H50, H68, J11.

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Section: Iii2 Switching From Db To Ndcmentioning

confidence: 99%

Ageing and the welfare state: securing sustainability

Meier¹,

Werding²

2010

Oxford Review of Economic Policy

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“…5 See Börsch-Supan, Heiss, Ludwig and Winter (2003). 6 Frictions caused by nontradable goods are not considered in this context as the impact of the existance of nontradable goods on cross-border equity holdings is hardly empirically measurable with our approach.…”

Section: Information Asymmetriesmentioning

confidence: 99%

Institutional Determinants of International Equity Portfolios - A Country-Level Analysis

Berkel

2007

The B.E. Journal of Macroeconomics

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Despite large potential gains, international equity investment is less diversified across countries than predicted by the international version of the traditional capital asset pricing model (ICAPM). This paper provides empirical evidence on the impact of capital market frictions on international equity portfolios using data on bilateral equity holdings. Two important findings are reported: First, besides a home bias in equities, a 'friendship bias' can be observed for some country pairs. Second, indirect barriers such as the degree of financial market development and especially information asymmetries have strong explanatory power, whereas direct barriers such as capital flow restrictions have no impact on the portfolio share of foreign equities.

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“…Many studies analyzed how aging affects aggregate economic performance (e.g., Börsch-Supan, 2001;Börsch-Supan et al, 2003, 2005Bös and von Weizsäcker, 1988;Denton and Spencer, 1998;Oliveira Martins et al, 2005;Roeger, 1999, 2003). Another line of research has been concentrated on the analysis of the effects of aging on both the structure of GDP and private demand for goods and services (e.g., Buslei et al, 2007;Börsch-Supan, 2003a,b;Lührmann, 2005;Oliveira Martins et al, 2005;Serow and Sly, 1988).…”

Section: Introductionmentioning

confidence: 99%

Does Aging Influence Sectoral Employment Shares? Evidence from Panel Data

2008

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this study, we investigate whether population aging influences employment shares in different economic sectors. To this end, we employ dynamic panel data analysis. Our unbalanced data set comprises 54 countries and extends to a maximum time period from 1970 till 2004. Our results suggest that the aging variable -approximated by the ratio of elderly either to the total population or to the labor force -does have a statistically significant differentiated impact on the employment shares when controlling for other relevant factors, e.g., income per capita, share of trade in GDP, government consumption share in GDP, population size, etc. In particular, we find that an increase in the aging proxies exerts a statistically significant adverse effect on the employment shares in agriculture, manufacturing, construction, and mining and quarrying industries. At the same time, increasing share of the elderly people in the society positively affects employment shares in community, social, and personal services as well as in the financial sector. In the simulation exercise, we illustrate the effects of aging on the employment structure within the next 45 years.Keywords: Structural change, aging, employment shares, dynamic panel data.JEL classification: J11, O57, C33 ¶ We are very grateful to U. Fritsche for his helpful remarks and to J.-O. Menz for his research assistence.All computations were performed using the DPD package for Ox, see Doornik et al. (2006), and using the R language, see http://cran.r-project.org/.

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Pension Reform, Capital Markets and the Rate of Return

Cited by 62 publications

References 60 publications

Ageing and the welfare state: securing sustainability

Ageing and the welfare state: securing sustainability

Institutional Determinants of International Equity Portfolios - A Country-Level Analysis

Does Aging Influence Sectoral Employment Shares? Evidence from Panel Data

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