What We Know and What We do not Know about the Willingness to Provide Self-Financed Old-Age Insurance

  • Axel Börsch-Supan


The point of departure for this chapter is the current flurry of pension reforms in Europe, actually, around the world. The reason for these reforms are well known, and it is no surprise that they are particularly debated in Europe: of the world regions, Europe has the highest proportion of population aged 65 or over (NAS, 2001). Within Europe (and hence in the world), Italy has the highest proportion of people aged 65 or over (18% in 2000), but Belgium, Sweden and Greece also score very high (17% or more). Outside Europe, only Japan has a similar age structure (about 17% of the population is 65 or over). In Europe, the ratio of persons aged over 65 as a percentage of the working age population 20–64 (the dependency ratio), is expected to increase from about 27% in 2000 to 39% in 2025, and to 53% in 2050 (European Commission, 2000). This increase of the dependency ratio in itself places a heavy financial burden on society.


Saving Rate Pension System Public Pension Private Saving Pension Reform 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. ALESSIE R., and KAPTEYN A. (2001), “Household Savings in the Netherlands”, Research in Economics, forthcoming.Google Scholar
  2. ALESSIE R., KAPTEYN A. and KLIJN F. (1997), “Mandatory pensions and personal savings in the Netherlands”, De Economist, 145, no. 3:291–324.CrossRefGoogle Scholar
  3. ATTANASIO O. and DE LEIRE T. (1994), “IRAS and household saving revisited: some new evidence”, NBER working paper 4900.Google Scholar
  4. ATTANASIO O. and BRUGIAVINI A. (1997), “L’effetto della Riforma Amato sul risparmio delle famiglie italiane”, Ricerche Quantitative per la Politica Economica-1995, Banca d’Italia-CIDE (eds.), Rome.Google Scholar
  5. ATTANASIO O., and BANKS J. (1998), “Trends in household saving don’t justify tax incentives to boost saving”, Economic Policy, October.Google Scholar
  6. AUERBACH A.J. and KOTLIKOFF L.J. (1987), Dynamic Fiscal Analysis, Cambridge University Press, Cambridge, England.Google Scholar
  7. AUERBACH A.J., KOTLIKOFF L.J., HAGEMANN R.G. and NICOLETTI G. (1989), “The Economic Dynamics of an Ageing Population: The Case of Four OECD Countries”, Oecd Economic Studies, No. 12.CrossRefGoogle Scholar
  8. BANKS J., BLUNDELL R. and TANNER S. (1998), “Is There a Retirement-Savings Puzzle?”, American Economic Review 88(4):769–88.Google Scholar
  9. BARRO R. J. (1974), “Are Government Bonds Net Wealth?”, Journal of Political Economy, 82, 5:1095–117CrossRefGoogle Scholar
  10. BERNHEIM B. D. (1987a), “The Economic Effects of Social Security: Toward a Reconciliation of Theory and Measurement”, Journal of Public Economics, 33:273–304.CrossRefGoogle Scholar
  11. BERNHEIM B. D. (1987b), “Dissaving After Retirement: Testing the Pure Life Cycle Hypothesis”, in Bodie Z., Shoven J. and Wise D. (eds.), Issue in Pension Economics, NBER, The University of Chicago Press, Chicago.Google Scholar
  12. BIRG H. and BÖRSCH-SUPAN A. (1999), Für eine neue Aufgabenteilung zwischen gesetzlicher und privater Altersversorgung, GDV, Berlin.Google Scholar
  13. BOERI T., BÖRSCH-SUPAN A. and TABELLINI G. (2001), “Would you Like to Shrink the Welfare State? The Oninions of Euronean Citizens”, Economic Policy. 32, in nress.Google Scholar
  14. BÖRSCH-SUPAN A. (1992), “Saving and consumption patterns of the elderly: the German case”, Journal of Population Economics, 5:289–303.CrossRefGoogle Scholar
  15. BÖRSCH-SUPAN A. (1994), “Savings in Germany — Part II: Behavior”, in Poterba J. (ed.), International Comparisons ofHousehold Savings. University of Chicago Press. Chicago and London, pp. 207–236.Google Scholar
  16. BÖRSCH-SUPAN A. (1996), “The Impact of Population Ageing on Savings, Investment and Growth in the OECD Area”, in OECD, Future Global Capital Shortages: Real Threat or Pure Fiction?, Paris, OECD, 103–141.Google Scholar
  17. BÖRSCH-SUPAN A. (1999), “Zur deutschen Diskussion eines Übergangs vom Umlage- zum Kapitaldeckungsverfahren in der Gesetzlichen Rentenversicherung”, in Finanzarchiv, 55 (3):400–428.Google Scholar
  18. BÖRSCH-SUPAN A. (2000), “A Model under Siege: A Case Study of the Germany Retirement Insurance System”, The Economic Journal, 110 (461):F24–45.CrossRefGoogle Scholar
  19. BÖRSCH-SUPAN A. (ed.) (2001a), International Comparisons of Household Saving: A Study of Life-Cycle Savings in Seven Countries, Academic Press, New York.Google Scholar
  20. BÖRSCH-SUPAN A. (2001b), “The German Savings Puzzle”, Research in Economics, 55, in press.Google Scholar
  21. BÖRSCH-SUPAN A. and LÜHRMANN M. (2000), Prinzipien der Renten- und Pensionsbesteuerung, Frankfurter Institut, Bad Homburg.Google Scholar
  22. BÖRSCH-SUPAN A. and STAHL K. (1991), “Life-cycle savings and consumption constraints”, Journal of Population Economics, 4:233–255.CrossRefGoogle Scholar
  23. BÖRSCH-SUPAN A. and REIL-HELD A. (2001), “How much is Transfer and how much Insurance in a Pay-As-You-Go System? The German Case”, Scandinavian Journal of Economics, in press.Google Scholar
  24. BÖRSCH-SUPAN A. and WINTER J. K. (2001), “Population Aging, Savings Behavior and Capital Markets”, Universität Mannheim, Sonderforschungsbereich, 504.Google Scholar
  25. BÖRSCH-SUPAN A., HEISS F. and WINTER J. K. (2001), “Pension Reform, Capital Markets, and the Rate of Return”, mimeo, University of Mannheim and Herbert-Giersch-Stiftung, Magdeburg.Google Scholar
  26. BÖRSCH-SUPAN A., REIL-HELD A., RODEPETER R., SCHNABEL R. and WINTER J. (2001), “The German Saving Puzzle”, Research in Economics, forthcoming.Google Scholar
  27. BREYER F. (2000), “Kapitaldeckungs- versus Umlageverfahren”, Perspektiven der Wirtschaftspolitik.Google Scholar
  28. BRUGIAVINI A. (1987), “Empirical Evidence on Wealth Accumulation and the Efiects of Pension Wealth: an Application to Italian Cross Section Data”, Financial Markets Group, D. P. 20, Lse, London.Google Scholar
  29. BRUGIAVINI A. and PADULA M. (2001), “Too much for Retirement? Saving in Italy”, Research in Economics, forthcoming.Google Scholar
  30. BRUGIAVINI A. and WEBER G. (2001), “Household Savings: Concepts and Measurement”, in Börsch-Supan A. (ed.), International Comparisons of Household Saving, Academic Press, New York.Google Scholar
  31. DILNOT A.W. (1992), “Taxation of Private Pensions: Costs and Consequences”, in OECD, Private Pensions and Public Policy, OECD, Paris.Google Scholar
  32. EUROPEAN COMMISSION (2000), The Contribution of Public Finances to Growth and Employment: Improving Quality and Sustainability, Communication from the European Commission to the Council and the European Parliament.Google Scholar
  33. EUWALS R. (2000), “Do Mandatory Pensions Decrease Household Savings: Evidence for the Netherlands”, De Economist, 148:643–670.CrossRefGoogle Scholar
  34. FELDSTEIN M. (1974), “Social Security, Induced Retirement and Aggregate Capital Accumulation”, Journal of Political Economy, 82 (5):905–926.CrossRefGoogle Scholar
  35. GALE W. J. and SCHOLZ J. K. (1994), “IRAs and household saving”, American Economic Review, 84:1233–1260.Google Scholar
  36. GRUBER J. and WISE D. (eds.) (1999), Social Security and Retirement Around the World, The University of Chicago Press, Chicago.Google Scholar
  37. HELLER P. (1989), “Aging, Savings and the Sustainability of the Fiscal Burden in the G7-countries: 1980–2025”, IMF.Google Scholar
  38. HUBBARD R.G. (1986), “Pension wealth and individual saving, some new evidence”, Journal of Money Credit and Banking, 18:167–178.CrossRefGoogle Scholar
  39. JAPPELLI T. (1995), “Does social security wealth reduce the accumulation of private wealth? Evidence from Italian survey data”, Ricerche Economiche, 49:1–31.CrossRefGoogle Scholar
  40. JAPPELLI T. and MODIGLIANI F. (1998), “The Age-Saving Profile and the Life-Cycle Hypothesis”, Csef Working Paper No. 4, University of Salerno.Google Scholar
  41. KAPTEYN A., ALESSIE R. and LUSARDI A. (1999), “Explaining the wealth holdings of different cohorts: productivity growth and social security”, mimeo, Tinbergen Institute.Google Scholar
  42. KING M. and DICKS-MIREAUX L. (1982), “Asset Holding and the Life Cycle”, Economic Journal, 92.Google Scholar
  43. KOHL R. and O’BRIEN P. (1998), The Macroeconomics of Ageing, Pensions and Savings: A Survey, OECD Working Paper AWP1.1, Paris.CrossRefGoogle Scholar
  44. MODIGLIANI F. and BRUMBERG R. (1954), “Utility Analysis and the Consumption Function: An Interpretation of Cross-section Data”, in Kurihara K. (ed.), Post-Keynesian Economics, Rutgers University Press, New Brunswick, Nj.Google Scholar
  45. NATIONAL ACADEMY OF SCIENCES (NAS, 2001), A Research Agenda and New Data for An Aging World, forthcoming.Google Scholar
  46. ROSSI N. and VISCO I. (1994), “Private Saving and the Government Deficit in Italy”, in Ando A., Guiso L. and Visco I. (eds.), Saving and the Accumulation of Wealth, Cambridge University Press, Cambridge.Google Scholar
  47. SINN H. W. (2000), “Why to Fund and Why Not to Fund”, mimeo, CES, Munich.Google Scholar
  48. SKINNER J. and HUBBARD R. G. (1996), “Assessing the Effectiveness of Saving Incentives”, Journal of Economic Perspectives, 10(4):73–90. CrossRefGoogle Scholar
  49. VENTI S. and WISE D. (1990), “Have Iras increased U.S. Savings? Evidence from consumer expenditure surveys”, Quarterly Journal of Economics, 105:661–98.CrossRefGoogle Scholar
  50. WORLD BANK (1999), “The Tax Treatment of Funded Pensions”, World Bank Pension Reform Primer, 2.3, Washington, D.C.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2001

Authors and Affiliations

  • Axel Börsch-Supan

There are no affiliations available

Personalised recommendations