November 2023
10Nov

Health and Retirement: Heterogeneity in the Responsiveness to Pension Incentives

By De Fen Hsu, Melinda Sandler Morrill & Aditi Pathak Workers often time retirement around pension eligibility, yielding a strong instrument for retirement timing.  By estimating the characteristics of the complier population, we find heterogeneity by individuals' health status in the responsiveness to pension-related financial incentives to retire.  Workers in poor health do not uniformly retire earlier or later, but rather are less responsive overall to pension incentives.  Thus, characterizing compliers may yield different conclusions than simple comparisons of means. Source...

November 10, 2023
Articles, System Characterization, ,
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10Nov

In search of financially sustainable pension systems: three benchmark models

By Ekaterina Cuéllar, Daniel Gamboa & Waldo Tapia  One of the great dilemmas facing countries around the world is to define a pension system that is financially sustainable in the face of increasing life expectancy, falling fertility rates and the consequent lack of generational replacement. Globally, pension reforms in countries with more advanced aging processes have focused on implementing parametric reforms and incorporating automatic adjustments of the main parameters to share productivity, financial and demographic risks. In this article we present the advantages...

November 10, 2023
Articles, Sustainability, , ,
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03Nov

ESG in China: A review of practice and research, and future research avenues

By Hongtao Shen, Honghui Lin, Wengi Han & Huiying Wu   This paper reviews the practice and research on environmental, social and governance (ESG) in China. It finds that (1) under China’s top-down framework, ESG practices have grown substantially in ESG disclosure, ESG rating and ESG investing; and (2) ESG research has focused on corporate ESG disclosure and performance as well as ESG investing. Although the topics of the ESG studies reviewed in this paper are similar to those of ESG...

November 3, 2023
Articles, Investment, , ,
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03Nov

Aging, Healthcare System, and Interest Rates

By Reona Hagiwara Over the past few decades, the Japanese economy has experienced the widening gap between returns on liquid bonds and illiquid capital (i.e., the liquidity premium) due to a secular decline in the real interest rate and a slight increase in the capital return. This paper explores the role of the health or medical expenditure risk in the increase in the premium, using a general equilibrium overlapping generations model with heterogeneous agents that differ in health status and...

November 3, 2023
Aging, Articles, , , ,
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03Nov

The Impact of Population Aging on Financial Services and Economic Development

By Hongyu Fang With the increasing aging population, it has had a profound impact on the financial services industry and economy. This study aims to explore the effect of population aging on the financial service industry and economy and propose corresponding countermeasures and suggestions. The aging population has brought challenges to the financial services industry. The increase in the elderly population has led to a rise in demand for financial products and services. Financial institutions innovate and develop financial products...

November 3, 2023
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October 2023
27Oct

From PEPP to Corona: European Aspects of the Dutch Pension System

By Hans van Meerten In this contribution, I will address some salient points in the Dutch and European pension landscape. For instance, the state of affairs anno 2023 regarding the WTP and the 'EU Pension Union' (EPU) will be addressed. What developments are there and do they actually bring the signalled EPU (in 2015) closer or further away? In doing so, I would like to address two topics specifically: the internal market for pensions and developments regarding the Corona pandemic,...

October 27, 2023
Articles, Pension design, ,
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27Oct

Time Consistency in Optimal Retirement Planning

By Frank Bosserhoff, An Chen & Manuel Rach We study time consistency in optimal consumption problems of annuities and tontines. We find the annuity problem to be time-consistent, hence delivering the same optimal consumption at each time. The tontine problem, however, is found to be time-inconsistent, opening the possibility for individuals to increase or decrease their overall expected utility by changing the ex ante fixed consumption profile. However, such an increase in the utility of the tontine cannot lead to...

October 27, 2023
Articles, Pension design, ,
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27Oct

Determinants of Portfolio ESG Performance: An Attribution Framework

By James J. Li We develop a parsimonious attribution framework for evaluating the ESG performance of a portfolio. Our attribution model decomposes portfolio ESG performance into three principal components: a value effect, a weighting effect, and an interaction effect. We illustrate our approach using the equity portfolios of U.S. public pension funds over time. We find that U.S. public pensions’ positive ESG performance over the past decade is mainly due to their underlying holdings boosting their ESG scores over this...

October 27, 2023
Articles, Pension Management, , ,
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20Oct

Preparing for an Aging Africa: Data-Driven Priorities for Economic Research and Policy

By Madeline E. Duhon, Edward Miguel, Amos Njuguna, Daniela Pinto Veizaga & Michael W. Walker The over-60 population in Sub-Saharan Africa is expected to grow rapidly in the coming decades, tripling between 2020 and 2050. Despite this explosive projected growth, few countries in the region have implemented policies designed to support older populations. Further, little research in economics has specifically examined aging in Sub-Saharan Africa, though many opportunities exist for economists to generate research evidence to inform the design of...

October 20, 2023
Aging, Articles, , ,
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20Oct

Understanding Financial Vulnerability Among Asians, Blacks, and Hispanics in the United States

By Andrea Hasler, Annamaria Lusardi, Olivia S. Mitchell & Alessia Sconti The COVID-19 crisis has brought to light the deeply rooted financial struggles that many people face in America, and it also exacerbated racial inequality. In particular, minority communities have been disproportionately impacted by the pandemic in many ways, making them ideal targets for efforts to promote financial well-being. This paper examines the financial vulnerability of Asians, Blacks, and Hispanics in the United States, along with potential drivers, using data...

October 20, 2023
Articles, System Characterization, , , ,
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