Pensionomics pp 173-239 | Cite as

Discussion and Assessment

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 572)


Human Capital Total Factor Productivity Physical Capital Pension Scheme Human Labor 
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  1. 43.
    This confirms the results of von Weizäcker [1999], who lacks the θ(t)-uncertainty and finds thus no diversification potential between the pension pillars.Google Scholar
  2. 45.
    See also Gollier [2001, pp. 309–311] and Lengwiler [2004, p. 107].Google Scholar
  3. 48.
    Note that as Merton [1983, p. 331] remarks one could alternatively define the price of human capital securities based on the net value of human capital; then they would not yield this extra payoff. The applied definition is without consequences for the equilibrium result and purely for convenience to apply the usual accumulation equation.Google Scholar
  4. 49.
    See Merton [1983] equation (40).Google Scholar
  5. 51.
    See, for instance, Börsch-Supan and Wilke [2003]. Furthermore, overcoming the strict life-cycle of this model and allowing for individually chosen retirement ages requires to complement the earnings point systems with the concept of years of service life.Google Scholar
  6. 52.
    See Börsch-Supan and Wilke [2003, p. 12].Google Scholar
  7. 53.
    See Borgmann [2005, Table 6.3] for a good overview and detailed description on Germany. In the United States the system is based on averaged indexed monthly earnings; see Rosen [2002, pp. 181–185] or Liebman [2001].Google Scholar
  8. 54.
    See Bundesministerium für Gesundheit und Soziale Sicherung [2003, p. 103]. Note that already the later revoked reform of 1999 would have made such an adjust?ment: the effect of Rürup’s sustainability-factor is essentially the same as that of the early proposed demographic-factor. Admittedly, it must also be mentioned that the financing problems are partially caused by structural problems on the labor market resulting in economic and unemployment sclerosis. Yet, the transmission mechanism for the PAYGO problems is the same: less workers and a high wage level.Google Scholar
  9. 56.
    There is even an asset management strategy dedicated to this argument; see, for instance, Cragg [1998].Google Scholar
  10. 57.
    See Auerbach et al. [1991, 1992, 1994] for the academic development of gen?erational accounting. An international overview of its application is provided in Auerbach, Kotlikoff and Leibfritz [1999]. The European Commission [1999] and Raffelhüschen [1999] focus on the European Union.Google Scholar
  11. 58.
    Note, that this refers to the perspective of a single country or of the entire world. Important contributions to the understanding of different qualities of labor input have been derived in inter-country studies; see for instance Uzawa [1965], Lucas [1988] or Lucas [2002].Google Scholar
  12. 59.
    See Kotlikoff and Burns [2004, p. 49]Google Scholar

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© Springer-Verlag Berlin Heidelberg 2006

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