IDEAS home Printed from https://ideas.repec.org/p/mnh/vpaper/1061.html
   My bibliography  Save this paper

Age and Cohort Effects in Saving and the German Retirement System

Author

Listed:
  • Börsch-Supan, Axel

Abstract

As the public pay-as-you-go pension systems of the aging industrialized countries are likely to become seriously strained under the growing dependency burden, the question arises whether a society should rely on private savings to finance old-age consumption. This is an empirical question about the magnitude and the flexibility of saving rates. This paper argues that saving rates must increase in an unprecedented fashion in order to compensate for the dependency effect. The paper takes the German case as an example. It analyses saving behavior in Germany using three waves of the Income and Expenditure Survey. It separates age and cohort effects; computes the demographically induced change in the aggregate saving rate; and compares the magnitude of these excess savings with the increasing burden of the pension system. Finally, a macroeconomic simulation model is used to explore possible paths of the cohort effects in saving rates.

Suggested Citation

  • Börsch-Supan, Axel, 1995. "Age and Cohort Effects in Saving and the German Retirement System," Discussion Papers 513, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  • Handle: RePEc:mnh:vpaper:1061
    as

    Download full text from publisher

    File URL: https://ub-madoc.bib.uni-mannheim.de/1061/1/513.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Johnson, D. Gale, 1999. "Population and economic development," China Economic Review, Elsevier, vol. 10(1), pages 1-16.
    2. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 1-25.
    3. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, January.
    4. Borsch-Supan, Axel H & Stahl, Konrad, 1991. "Life Cycle Savings and Consumption Constraints: Theory, Empirical Evidence, and Fiscal Implications," Journal of Population Economics, Springer;European Society for Population Economics, vol. 4(3), pages 233-255, August.
    5. Bo[dieresis]s, Dieter & von Weizsa[dieresis]cker, Robert K., 1989. "Economic consequences of an aging population," European Economic Review, Elsevier, vol. 33(2-3), pages 345-354, March.
    6. Boskin, Michael J, 1978. "Taxation, Saving, and the Rate of Interest," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages 3-27, April.
    7. Michael J. Boskin, 1978. "Taxation, Saving, and the Rate of Interest," NBER Chapters,in: Research in Taxation, pages 3-27 National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M. Baldini & C. Mazzaferro, 2000. "Transizione demografica e formazione del risparmio delle famiglie italiane," Working Papers 366, Dipartimento Scienze Economiche, Universita' di Bologna.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnh:vpaper:1061. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katharina Rautenberg). General contact details of provider: http://edirc.repec.org/data/ivmande.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.