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Pension reform, savings behavior, and capital market performance

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Author Info
B RSCH-SUPAN, AXEL H.
JENS K KE, F.
WINTER, JOACHIM K.

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Abstract

This paper shows that the capital market effects of population aging and pension reform are particularly strong in continental European economies such as France, Germany, and Italy. Reasons are threefold: these countries have large and ailing pay-as-you-go public pension systems, relatively thin capital markets and less than benchmark capital performance. The aging process will force the younger generations in these countries to provide more retirement income through own private saving. Capital markets will therefore grow in size and active institutional investors will become more important as intermediaries. The aim of this paper is to show that these changes are likely to generate beneficial side effects in terms of improved productivity and aggregate growth.

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Publisher Info
Article provided by Cambridge University Press in its journal Journal of Pension Economics and Finance.

Volume (Year): 4 (2005)
Issue (Month): 01 (March)
Pages: 87-107
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Handle: RePEc:cup:jpenef:v:4:y:2005:i:01:p:87-107_00

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Stefan W. Schmitz, 2005. "Demographic Developments, Funded Pension Provision and Financial Stability," Finance 0510023, EconWPA. [Downloadable!]
    Other versions:
  2. Axel Börsch-Supan & Alexander Ludwig, 2008. "Old Europe Ages: Reforms and Reform Backlashes," NBER Chapters, in: Demography and the Economy National Bureau of Economic Research, Inc. [Downloadable!]
  3. Börsch-Supan, Axel, 2005. "Risiken im Lebenszyklus: Theorie und Evidenz," Sonderforschungsbereich 504 Publications 05-05, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
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