Pension Reform, Financial Market Development, and Economic Growth: Preliminary Evidence from Chile
52 Pages Posted: 15 Feb 2006
Date Written: August 1996
Abstract
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.
JEL Classification: G23, O16, O46, O54
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Economic Reforms and Labor Markets: Policy Issues and Lessons from Chile
-
Revealed Preference and Self-Insurance: Can We Learn from the Self-Employed in Chile?
By Abigail Barr and Truman G. Packard
-
The 1997 Pension Reform in Mexico
By Gloria Grandolini and Luis Cerda
-
A Framework for the Analysis of Pension and Unemployment Benefit Reform in Poland
-
Political Risk Versus Market Risk in Social Security
By John B. Shoven and Sita N. Slavov
-
Protecting the Old and Promoting Growth: A Defense of Averting the Old Age Crisis
-
Is There a Positive Incentive Effect from Privatizing Social Security? Evidence from Latin America