Pension Reform, Savings Behavior and Corporate Governance
نویسندگان
چکیده
France, Germany and Italy, to take the three largest economies in continental Europe, have large and ailing pay-as-you-go public pension systems, very thin capital markets, and low capital performance. Taking Germany as an example, we show that these three issues are closely linked. Specifically, we argue that pension reform, via a change in portfolio composition of households and a strengthening of corporate governance through institutional investors, can have important beneficial side effects in terms of capital efficiency and total factor productivity. Discussions about pension reform should therefore be broader than the narrow debate on how to diffuse the future financial strain caused by population aging. We suggest that looking at pension reform and capital market problems together sheds additional and new light on the continuing debate about advantages and disadvantages of pay-as-you-go and fully funded pension systems. ADDRESS: Department of Economics University of Mannheim D-68131 Mannheim, Germany Fax: +49-621-292-5426 E-Mail: [email protected] [email protected] 1 PENSION REFORM, SAVINGS BEHAVIOR AND CORPORATE GOVERNANCE by Axel H. Börsch-Supan and Joachim K. Winter
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