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Funded Pensions and Economic Growth

Author

Listed:
  • Michiel Bijlsma

    () (Tilburg University)

  • Johannes Bonekamp

    () (Tilburg University and Netspar)

  • Casper Ewijk

    () (University of Amsterdam and Netspar)

  • Ferry Haaijen

    () (De Nederlandsche Bank)

Abstract

Abstract If larger pension savings lead to deeper capital markets, this can be expected to have a positive effect on economic growth in particular for firms that rely on external finance. We employ this differential impact on firms with less or more external finance to identify the effect of pension saving on economic growth. Using data for 69 industrial sectors in 34 OECD countries for the period 2001–2010, we find a significant impact of pension assets on growth for sectors that are more dependent on external financing. This relation is not significantly changed by the 2007–2008 banking crisis.

Suggested Citation

  • Michiel Bijlsma & Johannes Bonekamp & Casper Ewijk & Ferry Haaijen, 2018. "Funded Pensions and Economic Growth," De Economist, Springer, vol. 166(3), pages 337-362, September.
  • Handle: RePEc:kap:decono:v:166:y:2018:i:3:d:10.1007_s10645-018-9325-z
    DOI: 10.1007/s10645-018-9325-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Funded pensions; Financial structure; Economic growth;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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