Savings in Chile: What Went Right?

Morandé, Felipe

doi:10.2139/ssrn.1815952

Cited by 18 publications

(18 citation statements)

References 11 publications

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“…The same conclusions for Chile are achieved by two other studies although to a different extent. First, Morande () argues that the emergence of private pension funds in Chile had a positive effect on total private saving. To investigate the extent of a positive crowding‐out, that is, the effect of compulsory saving on private voluntary saving, he estimates co‐integrating equations for the latter both in per‐capita values and as a ratio of GDP.…”

Section: Pension Funds and Financial Marketsmentioning

confidence: 99%

The Effects of Pension Funds on Markets Performance: A Review

Thomas

Spataro

2014

Journal of Economic Surveys

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Abstract. The worldwide reforming process of pension systems triggered by the demographic transition and globalization has led several countries to implement multi-pillar pension systems and enhance pension funds. For this reason the studies on the effects that pension funds exert on markets performance have been flourishing in the last decades. In this paper, we provide an updated review of the empirical advances in this field of study, with particular focus on the effects that pension funds produce on labour markets, financial markets and economic growth.

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Section: Pension Funds and Financial Marketsmentioning

confidence: 99%

The Effects of Pension Funds on Markets Performance: A Review

Thomas

Spataro

2014

Journal of Economic Surveys

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“…Using an error correction model, Morande (1996) also finds a significant positive effect of a pension fund dummy on private saving from 1960 to 1995. He speculates that the financial market deepening caused by pension reform may have made voluntary saving less likely to be crowded out by, and therefore less sensitive to fluctuations in, foreign saving, thus making the country's supply of investible resources less dependent on foreign capital.…”

Section: Increased National Savingmentioning

confidence: 90%

New Models for Old-Age Security: Experiments, Evidence, and Unanswered Questions

James¹

1998

The World Bank Research Observer

100

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The escalating costs of traditional social security systems are forcing countries to reevaluate the formal programs that provide income maintenance support to the aging. This article suggests a reform strategy built around three systems, or "pillars," to provide old-age security-a public pillar with mandatory participation, a private, mandatory savings plan, and a voluntary savings system. Three variations of this model are being implemented in different countries: the Latin American model, in which individual workers choose an investment manager for their retirement funds; the OECD model, in which employers, union trustees, or both choose the investment manager for an entire company or occupation; and the Swedish notional account model, a reformed pay-as-you-go first pillar that may be supplemented by a second, funded pillar. Preliminary empirical evidence on the efficiency and growth effects of pension reform, mostly from Chile, indicates that the impact on national saving and financial market development and, through these, economic growth, has been positive and possibly large. Problems concerning high administrative costs and regulations that distort investment decisions remain to be resolved, however.

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“…However, Edwards (1995) notes that, sophisticated financial products like pension asset-backed housing finance have increased the rate of savings. Likewise, Morandé (1998) found that funded pension funds increased savings in Chile which improved the ability of pension fund members to raise down payments for a mortgage.…”

Section: Pension Contribution Performance Informationmentioning

confidence: 99%

Pension reforms, risk transfer and housing finance innovations

Donkor-Hyiaman

Pärn

Owusu‐Manu

et al. 2019

J Hous and the Built Environ

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Weak housing creditor protection, accentuated by weak landed property rights and underdeveloped credit information systems constitute major constraints to housing finance development in many developing countries. Improving housing creditor protection require further institutional development and financial innovation. As a trigger of financial innovation, regulation has spawned pension reforms leading to the global shift from defined benefit to defined contribution pension schemes, which has created new opportunities to improve housing creditor protection and thus engender housing finance innovations. This paper considers how pension assets-accumulated benefits and associated personal, employment and contribution information-has provided a basis for collateralized lending and an additional avenue for credit information system development. The paper proposes a pension asset-backed creditor protection model that utilizes defined contribution pension assets to improve housing credit allocation, and thus, housing finance development. Pension assets represent alternative or complementary collateral assets for securing a housing credit (mortgage). And as depositories of information, the information content of pension assets and institutions could also be used alternatively and complementarily to assess the capacity, character and contribution (equity) of potential borrowers in the credit underwriting process. Future applied research may consider how the proposed model could be integrated in existing credit underwriting systems and the operational challenges that could emerge.

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Savings in Chile: What Went Right?

Cited by 18 publications

References 11 publications

The Effects of Pension Funds on Markets Performance: A Review

The Effects of Pension Funds on Markets Performance: A Review

New Models for Old-Age Security: Experiments, Evidence, and Unanswered Questions

Pension reforms, risk transfer and housing finance innovations

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