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Innovative Investments, Natural Resources and Intergenerational Fairness: Are Pension Funds Good for Sustainable Development? Author info | Abstract | Publisher info | Download info | Related research | Statistics Lucas Bretschger
Karen Pittel
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We analyse long-term consumption paths in a dynamic two-sector economy with overlapping generations. Each young generation saves for the retirement age, both with private savings and pension funds. The productivity of each sector can be raised by sector-specific research, while the essential use of a non-renewable natural resource poses a threat to consumption possibilities in the long run. Bonds, the two types innovations, and resource stocks are the different investment opportunities. We show that pension funds have a positive impact on long-term development, provided that individuals have a preference for own investments. In this case, sustainability is more likely to be achieved due to pension fund savings.
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Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics .
Volume (Year): 141 (2005)
Issue (Month): III (September)
Pages: 355-376
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Handle: RePEc:ses:arsjes:2005-iii-3Contact details of provider: Email: Web page: http://www.sjes.ch More information through EDIRC
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Keywords: economic growth ; pension funds ; sustainable development ; financial investments ; overlapping generations ; Other versions of this item:
Find related papers by JEL classification: O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation G23 - Financial Economics - - Financial Institutions and Services - - - Pension Funds; Other Private Financial Institutions
References listed on IDEAS 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.:
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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.)
Karen Pittel & Lucas Bretschger, 2008.
"Sectoral Heterogeneity, Resource Depletion, and Directed Technical Change: Theory and Policy ,"
Economics working paper series
08/96, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
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