Pension Reform, Financial Market Development, and Economic Growth
Author | : Mr.Robert Holzmann |
Publisher | : International Monetary Fund |
Total Pages | : 52 |
Release | : 1996-08-01 |
ISBN-10 | : 9781451950755 |
ISBN-13 | : 1451950756 |
Rating | : 4/5 (756 Downloads) |
Download or read book Pension Reform, Financial Market Development, and Economic Growth written by Mr.Robert Holzmann and published by International Monetary Fund. This book was released on 1996-08-01 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Chilean pension reform of 1981, in which Chile moved from an unfunded to a funded scheme, is considered to have contributed to this country’s excellent economic performance since the mid-1980s. The paper highlights the theoretical underpinnings of the claimed economic effects and presents empirical data and preliminary econometric testing of the conjectured growth, capital formation, and saving effects. The empirical evidence is consistent with most of the claims. In particular, the direct impact of financial market development on private saving is found to be negative, which underscores the importance of sound fiscal policy and public saving to support the transition.