IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

International Diversification of Pension Assets Is No Panacea for Population Aging

  • F.L. MacKellar
  • H. Reisen

Six years ago,\f2The Economist\f1 wrote that investing retirement savings in developed countries in the emerging markets of still-youthful developing countries promised to "beat demography." As labor force growth slows in the North, runs this argument, capital becomes abundant relative to labor and the rate of return to this capital declines. By investing in the South, not only do OECD investors earn a higher rate of return on their savings, but the rate of return to that capital which remains in the North is boosted as well, because there is less of it. Working with a two-region neoclassical economic-demographic model, the authors show that reallocating capital from North to South can, at most, only slightly attenuate the negative macroeconomic impacts of population aging. Moreover, the reallocaion gives rise to significant, and thus politically challenging, shifts in the distribution of income between working- and retirement-age populations in both regions.

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: http://www.iiasa.ac.at/Publications/Documents/IR-98-034.pdf
Download Restriction: no

File URL: http://www.iiasa.ac.at/Publications/Documents/IR-98-034.ps
Download Restriction: no

Paper provided by International Institute for Applied Systems Analysis in its series Working Papers with number ir98034.

as
in new window

Length:
Date of creation: Jun 1998
Date of revision:
Handle: RePEc:wop:iasawp:ir98034
Contact details of provider: Postal: A-2361 Laxenburg
Phone: +43-2236-807-0
Fax: +43-2236-71313
Web page: http://www.iiasa.ac.at/Publications/Catalog/PUB_ONLINE.html
Email:


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.:

as in new window
  1. Sylvester J. Schieber & John B. Shoven, 1994. "The Consequences of Population Aging on Private Pension Fund Saving and Asset Markets," NBER Working Papers 4665, National Bureau of Economic Research, Inc.
  2. Paul R. Masson & Ralph W. Tryon, 1990. "Macroeconomic Effects of Prelected Population Aging in Industrial Countries," IMF Working Papers 90/5, International Monetary Fund.
  3. Peter Yoo, 1994. "Boom or bust? the economic effects of the baby boom," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 13-22.
  4. David M. Cutler & James M. Poterba & Louise M. Sheiner & Lawrence H. Summers, 1990. "An Aging Society: Opportunity or Challenge?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(1), pages 1-74.
  5. repec:fth:harver:1490 is not listed on IDEAS
  6. Guillermo LarraĆ­n & Helmut Reisen & Julia von Maltzan, 1997. "Emerging Market Risk and Sovereign Credit Ratings," OECD Development Centre Working Papers 124, OECD Publishing.
  7. Matthew Higgins, 1997. "Demography, national savings and international capital flows," Staff Reports 34, Federal Reserve Bank of New York.
  8. Alan M. Taylor, 1996. "International Capital Mobility in History: The Saving-Investment Relationship," NBER Working Papers 5743, National Bureau of Economic Research, Inc.
  9. Blanchet, Didier & Kessler, Denis, 1992. "Pension Systems in Transition Economies: Perspectives and Choices Ahead," Public Finance = Finances publiques, , vol. 47(Supplemen), pages 21-33.
Full references (including those not matched with items on IDEAS)

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:wop:iasawp:ir98034. 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: (Thomas Krichel)

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.