Economy wide risk diversification in a three-pillar pension system
We model a three-pillar pension system and analyse the impact of exogenous shocks on an open economy, using an overlapping generation model where individuals live for two periods. The three-pillar pension system consists of (1) a PAYG pension system, (2) a defined benefits pension fund, and (3) private savings. The economy is exposed to an ageing trend, inflation and a stock market crash. We show that in the three-pillar pension system the impact of these shocks on the economy is mitigated when compared to a two- pillar system, since each shock has a different impact on the three pillars. In order to illustrate the working of the model with respect to the impact of shocks, both in magnitude and the development over time, we provide simulation results for the Netherlands.
|Date of creation:||2010|
|Contact details of provider:|| Postal: P.O. Box 616, 6200 MD Maastricht|
Phone: +31 (0)43 38 83 830
Web page: https://www.maastrichtuniversity.nl/
More information through EDIRC
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.:
- Lans Bovenberg & Harald Uhlig, 2008.
"Pension Systems and the Allocation of Macroeconomic Risk,"
NBER Chapters,in: NBER International Seminar on Macroeconomics 2006, pages 241-344
National Bureau of Economic Research, Inc.
- Bovenberg, A.L. & Uhlig, H.F.H.V.S., 2006. "Pension Systems and the Allocation of Macroeconomic Risk," Discussion Paper 2006-101, Tilburg University, Center for Economic Research.
- Bovenberg, A Lans & Uhlig, Harald, 2006. "Pension Systems and the Allocation of Macroeconomic Risk," CEPR Discussion Papers 5949, C.E.P.R. Discussion Papers.
- Lans Bovenberg & Harald Uhlig, 2006. "Pension Sytems and the Allocation of Macroeconomic Risk," SFB 649 Discussion Papers SFB649DP2006-066, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- repec:ebl:ecbull:v:10:y:2008:i:2:p:1-8 is not listed on IDEAS
- Çagaçan Deger, 2008. "Pension Reform in an OLG Model with Multiple Social Security Systems," ERC Working Papers 0805, ERC - Economic Research Center, Middle East Technical University, revised Oct 2008.
- Heer, Burkhard & Irmen, Andreas, 2014. "Population, pensions, and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 46(C), pages 50-72.
- Burkhard Heer & Andreas Irmen, 2008. "Population, Pensions, and Endogenous Economic Growth," Working Papers 0479, University of Heidelberg, Department of Economics, revised Nov 2008.
- Heer, Burkhard & Irmen, Andreas, 2009. "Population, Pensions and Endogenous Economic Growth," CEPR Discussion Papers 7172, C.E.P.R. Discussion Papers.
- Burkhard Heer & Andreas Irmen, 2013. "Population, Pensions, And Endogenous Economic Growth," CREA Discussion Paper Series 13-17, Center for Research in Economic Analysis, University of Luxembourg.
- Burkhard Heer & Andreas Irmen, 2008. "Population, Pensions, and Endogenous Economic Growth," CESifo Working Paper Series 2480, CESifo Group Munich.
- Paul R. Masson & Ralph W. Tryon, 1990. "Macroeconomic Effects of Projected Population Aging in Industrial Countries," IMF Staff Papers, Palgrave Macmillan, vol. 37(3), pages 453-485, September.
- Paul R Masson & Ralph W. Tryon, 1990. "Macroeconomic Effects of Prelected Population Aging in Industrial Countries," IMF Working Papers 90/5, International Monetary Fund.
- Nick Draper & Alex Armstrong, 2007. "GAMMA; a simulation model for ageing, pensions and public finances," CPB Document 147, CPB Netherlands Bureau for Economic Policy Analysis.
- Jan Bonenkamp & Ed Westerhout, 2010. "Intergenerational risk sharing and labour supply in collective funded pension schemes with defined benefits," CPB Discussion Paper 151, CPB Netherlands Bureau for Economic Policy Analysis.
- Verbic, Miroslav, 2007. "Modelling the pension system in an overlapping-generations general equilibrium modelling framework," MPRA Paper 10350, University Library of Munich, Germany.
- HENIN, P. Y. & WEITZENBLUM, Th., 2005. "Welfare effects of alternative pension reforms: Assessing the transition costs for French socio-occupational groups," Journal of Pension Economics and Finance, Cambridge University Press, vol. 4(03), pages 249-271, November.
- Thomas WEITZENBLUM & Pierre-Yves HENIN, 2003. "Welfare effects of alternative pension reforms : Assessing the transition costs for French socio-occupational groups," Computing in Economics and Finance 2003 144, Society for Computational Economics.
- Luca Gori & Luciano Fanti, 2008. "Longevity and PAYG pension systems sustainability," Economics Bulletin, AccessEcon, vol. 10(2), pages 1-8.
- Cagacan DEGER, 2011. "Pension Reform in an Overlapping Model with Multiple Social Security Systems," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 11(4), pages 563-572.
- Alex Armstrong & Nick Draper & AndrÃ© Nibbelink & Ed Westerhout, 2007. "Fiscal prefunding in response to demographic uncertainty," CPB Discussion Paper 85, CPB Netherlands Bureau for Economic Policy Analysis.
- Bas van Groezen & Lex Meijdam & Harrie A. A. Verbon, 2007. "The Case For Pay-As-You-Go Pensions In A Service Economy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(2), pages 151-165, May.
- Luciano Fanti & Luca Gori, 2009. "Longevity, fertility and PAYG pension systems sustainability," Discussion Papers 2009/77, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- Edwards, Sebastian, 1996. "Why are Latin America's savings rates so low? An international comparative analysis," Journal of Development Economics, Elsevier, vol. 51(1), pages 5-44, October.
- Kemmerling, Achim & Neugart, Michael, 2009. "Financial market lobbies and pension reform," European Journal of Political Economy, Elsevier, vol. 25(2), pages 163-173, June.
- Joaquim Oliveira Martins & Frédéric Gonand & Pablo Antolín & Christine de la Maisonneuve & Kwang-Yeol Yoo, 2005. "The Impact of Ageing on Demand, Factor Markets and Growth," OECD Economics Department Working Papers 420, OECD Publishing.
- Konstantins Benkovskis, 2006. "The Effect of Latvian Pension Reform on Savings and Government Budget," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 6(1), pages 3-21, July.
- Jan Bonenkamp & Martijn van de Ven, 2006. "A small stochastic model of a pension fund with endogenous saving," CPB Memorandum 168, CPB Netherlands Bureau for Economic Policy Analysis. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:unm:umamet:2010055. 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: (Leonne Portz)
If references are entirely missing, you can add them using this form.