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Capital accumulation, welfare and the emergence of pension fund activism

Author

Listed:
  • Pascal Belan

    () (LEN - Laboratoire d'Economie de Nantes - UN - Université de Nantes)

  • Philippe Michel

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

  • Bertrand Wigniolle

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

Abstract

This paper presents an overlapping generations model with altruistic consumers, in which pension funds, by holding a signi...cant share of capital assets, produce non competitive behavior. We study the consequences of such behavior on capital accumulation and welfare in the long run when subsidies are associated with contributions to pension funds. If bequests are operative and the subsidy rate is not too high, the capital stock increases with the introduction of pension funds, and this increases long run utility. If bequests are not operative without pension funds, the rise in long-run welfare is no longer guaranteed, even if the subsidy rate is low.

Suggested Citation

  • Pascal Belan & Philippe Michel & Bertrand Wigniolle, 2007. "Capital accumulation, welfare and the emergence of pension fund activism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00268847, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00268847
    DOI: 10.1628/001522107X186728
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00268847
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    References listed on IDEAS

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    Cited by:

    1. repec:hal:journl:halshs-00268842 is not listed on IDEAS
    2. Belan, Pascal & Michel, Philippe & Wigniolle, Bertrand, 2005. "Does imperfect competition foster capital accumulation in a developing economy?," Research in Economics, Elsevier, vol. 59(2), pages 189-208, June.

    More about this item

    Keywords

    imperfect competition; capital accumulation; pension funds; altruism;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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