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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 () (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH) )
Karen Pittel () (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH) )
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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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Paper provided by CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich in its series Economics working paper series with number
05/36.
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Length: 30 pages
Date of creation: Feb 2005Date of revision:
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Keywords: 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 - - - 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
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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.: Jukka Lassila & Tarmo Valkonen, 2001.
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International and Development Economics Working Papers
idec02-10, International and Development Economics.
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Marini Giancarlo & Scaramozzino Pasquale, 1995.
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Journal of Population Economics ,
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Martin Barbie & Marcus Hagedorn & Ashok Kaul, 2000.
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Bonn Econ Discussion Papers
bgse8_2000, University of Bonn, Germany, revised Jun 2000.
[Downloadable!]
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