IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

A Simulation Model of Global Pension Investment

Listed author(s):
  • Landis MacKellar
  • Helmut Reisen

How and to what extent can a high degree of global financial integration help the fast-ageing OECD benefit from the delayed ageing process in the non-OECD area? The question is being raised with increasing urgency as it is slowly understood that even fully funded pension schemes will not escape demographic pressures in the absence of considerable capital flows between the ageing OECD and the younger part of the world. A simulation with a two-region neo-classical economic-demographic model reaches two basic conclusions of importance to policy makers. First, capital flows from fast-ageing, mostly OECD countries to slowly ageing, mostly developing countries can only slightly attenuate, but not reverse, the consequences of an ageing population on falling returns to capital. Second, significant distributional effects are likely to arise from the interaction of population ageing and financial integration. Global financial integration benefits elderly lifetime savers, but hurts elderly ... Une intégration financière poussée au niveau mondial peut-elle aider les pays de l’OCDE en vieillissement rapide à tirer parti de la maturation démographique moins avancée des autres pays ? Si oui, comment et dans quelle proportion ? Ces questions deviennent de plus en plus pressantes dans un contexte où l’on prend lentement conscience que les systèmes de retraite — même entièrement capitalisés — n’échapperont pas aux contraintes démographiques en l’absence de transferts de capitaux considérables entre la zone de l’OCDE et les pays plus jeunes. Un modèle de simulation néoclassique « économie-démographie » portant sur deux régions met en évidence deux conclusions fondamentales pour les décideurs. D’une part, les flux de capitaux depuis les pays à vieillissement rapide (principalement la zone de l’OCDE) vers les pays plus jeunes (surtout des pays en développement) ne peuvent qu’atténuer légèrement — sans les annuler — les effets du vieillissement sur la baisse des rendements du ...

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 137.

in new window

Date of creation: 01 Aug 1998
Handle: RePEc:oec:devaaa:137-en
Contact details of provider: Postal:
2 rue Andre Pascal, 75775 Paris Cedex 16

Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:devaaa:137-en. 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: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.