Social Security: National Policies with International Implications

Pemberton, James

doi:10.1111/1468-0297.00459

Cited by 23 publications

(17 citation statements)

References 38 publications

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“…While this has been shown in other studies before, she can also show that across countries, relative differences in the age structure are the most important determinants of capital flows, a finding that is even more important for the analysis of pension reform than the fact that the absolute age structure affects a country's capital balance. These findings confirm that the mechanisms postulated by Börsch-Supan (1995) and Pemberton (1999) have always been at work in the real world. Such effects will be even more pronounced when a pension reform induces households to save more in order to maintain their living standards in old age.…”

Section: Pension Reform and Capital Mobilitysupporting

confidence: 88%

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Pension Reform, Capital Markets and the Rate of Return

Börsch‐Supan¹,

Heiß

Ludwig

et al. 2003

German Economic Review

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This paper discusses the consequences of population aging and a fundamental pension reform -that is, a shift towards more pre-funding -for capital markets in Germany. We use a stylized overlapping generations model to predict rates of return over a long horizon, taking demographic projections as given. Our simulations show that a transition to a partially funded system crowds out existing savings only partially. The capital stock increases initially, but decreases when the baby boom generations enter retirement. The corresponding decrease in the rate of return, which results from both population aging and pre-funded pensions, is only modest, less than one percentage point in the closed-economy, fixed-technology case. The return on capital can be improved by international diversification, that is, by investing pension funds in countries with a more favorable demographic transition path. Feedback effects from strengthened capital markets and improved corporate governance, which are unlikely to be achieved with capital market reforms alone, will raise capital performance further.

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Section: Pension Reform and Capital Mobilitysupporting

confidence: 88%

“…In a theoretical paper, Pemberton (1999) highlights the importance of international externalities caused by the effects of national pension and savings policies on the world interest rate.…”

Section: Pension Reform and Capital Mobilitymentioning

confidence: 99%

Pension Reform, Capital Markets and the Rate of Return

Börsch‐Supan¹,

Heiß

Ludwig

et al. 2003

German Economic Review

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“…See, for example, Casarico (2000) for competing PAYG and FF systems or Pemberton (2000), for the analysis of the shift from PAYG to FF. Competing PAYG systems may also be studied in a context of integrated capital markets, as in Pemberton (1999). integrated markets.…”

Section: Related Literaturementioning

confidence: 99%

The political economy of pension systems with low‑skilled labor mobility: a crossss‑country analysis

Gouveia¹

2018

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A navegação consulta e descarregamento dos títulos inseridos nas Bibliotecas Digitais UC Digitalis, UC Pombalina e UC Impactum, pressupõem a aceitação plena e sem reservas dos Termos e Condições de Uso destas Bibliotecas Digitais, disponíveis em https://digitalis.uc.pt/pt-pt/termos.Conforme exposto nos referidos Termos e Condições de Uso, o descarregamento de títulos de acesso restrito requer uma licença válida de autorização devendo o utilizador aceder ao(s) documento(s) a partir de um endereço de IP da instituição detentora da supramencionada licença.Ao utilizador é apenas permitido o descarregamento para uso pessoal, pelo que o emprego do(s) título(s) descarregado(s) para outro fim, designadamente comercial, carece de autorização do respetivo autor ou editor da obra.Na medida em que todas as obras da UC Digitalis se encontram protegidas pelo Código do Direito de Autor e Direitos Conexos e demais legislação aplicável, toda a cópia, parcial ou total, deste documento, nos casos em que é legalmente admitida, deverá conter ou fazer-se acompanhar por este aviso.The political economy of pension systems with lowskilled labor mobility: a crosssscountry analysis Autor(es):Gouveia, Ana Fontoura C O N Ó M I C A S 45Ana Fontoura Gouveia Nova School of Business and Economics ana.gouveia@novasbe.pt the political economy of penSion SyStemS With loW -SkilleD laBor moBility: a croSS -country analySiS Ana Fontoura Gouveia Received for publication: January 3, 2017 Revision accepted for publication: March 27, 2017 ABSTRACT This paper analyzes the impact of international low -skilled labor mobility on the majority support for a pension system in individual countries and on the welfare of the different agents. The two countries considered differ in the amount of redistribution from the high to the low -skilled population embedded in their pay -as -you -go social security systems, whose size (tax rate) is decided by majority voting, anticipating the impact on mobility. We show that labor mobility can create the conditions for a majority to favor pensions in a Bismarckian country, due to the ageing of the population caused by the departure of the young mobile. In a Beveridgean country, mobility does not necessarily undermine the support for the system, but may make the conditions for its existence more stringent, even if no individual migrates in equilibrium. Finally, we show that while labor mobility is always politically sustainable in the non -redistributive country, its political feasibility is at stake in the country performing income redistribution through the pension system whenever the interest rate is not sufficiently large.

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“…In addition to comparing the closed and the open economy results, these papers compare the case of coordination versus non-coordination. For example, Pemberton (1999Pemberton ( , 2000 shows that the shift from noncooperation to international coordination of pension policies creates an incentive towards capital accumulation. Beltrametti and Bonatti (2004), on the other hand, reach the opposite conclusion by adopting a different objective for the government.…”

Section: Introductionmentioning

confidence: 99%

PAYG pension systems with capital mobility

Piaser

Sato

2006

Int Tax Public Finan

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This paper studies the design of an optimal pension scheme in an OLG and open economy model. The pension scheme provides a flat rate benefit and is based on the PAYG principle. It thus combines inter- and intra-generational redistribution. In this setting a number of symmetric economies are connected by an open and perfect capital market. When this number is very large, we have the small open economy case; when it is reduced to one, we have the case of autarky or perfect coordination. As the number of countries increases, there is more intragenerational redistribution, but less capital accumulation

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Social Security: National Policies with International Implications

Cited by 23 publications

References 38 publications

Pension Reform, Capital Markets and the Rate of Return

Pension Reform, Capital Markets and the Rate of Return

The political economy of pension systems with low‑skilled labor mobility: a crossss‑country analysis

PAYG pension systems with capital mobility

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