| CODE | ECN4240 | |||||||||
| TITLE | Economics of Ageing and Pensions | |||||||||
| UM LEVEL | 04 - Years 4, 5 in Modular UG or PG Cert Course | |||||||||
| MQF LEVEL | 6 | |||||||||
| ECTS CREDITS | 4 | |||||||||
| DEPARTMENT | Economics | |||||||||
| DESCRIPTION | The starting point of this study-unit is an introduction of the main issues related to demographic developments over the medium to long term. In this study-unit the implications of ageing on economic growth and the sustainability of public finances will be discussed. Special reference will be made to intergenerational transfers and pensions with emphasis on the role of the state, the set up of different pension systems and a discussion on the different options related to pension reform. - Weeks 1-4 The role of population changes and demographic developments; theories of demographic transition; estimation of dependence ratios. - Weeks 5-11 Theories of intergeneration transfers; review of different pension systems; impact of ageing on the labour force and productivity; impact of ageing on health care and informal care. - Weeks 12-14 A number of case studies will be reviewed with special reference to the Maltese case. Study-unit Aims: The aim of this study-unit is to provide students with an overview of the main issues related to pensions and economics of ageing. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Better link demographic, economic and social developments to the problems related to the ageing of the populations. - Understand the nature and scope of the economic issues of ageing. - Identify the conceptual and theoretical bases of the economic analysis of issues related to the ageing of the population. - Gain knowledge on the different forms of pension systems which exist in different countries and on the different reform options applied within various countries. 2. Skills: By the end of the study-unit the student will be able to: - Apply his or her knowledge to the understanding of current issues and problems in this very important area of study. - Critically analyze decisions taken by policy makers in this sector. - Link issues related to pension reform with economic policy developments at EU level. - Develop an appreciation for political economy, and hence the link between Economics and other related disciplines. Main Text/s and any supplementary readings: Nicholas Barr (2003), The Welfare State as Piggy Bank, Oxford University Press The 2009 Ageing Report: economic and budgetary projections for the EU-27 Member States (2008-2060) Joint Report prepared by the European Commission (DG ECFIN) and the Economic Policy Committee (AWG) http://ec.europa.eu/economy_finance/publications/publication14992_en.pdf Pensions Working Group (2010) “Strategic Review on the Adequacy, Sustainability & Social Solidarity of the Pensions System”, https://secure2.gov.mt/socialpolicy/download.aspx?id=1233 von Brockdorff P (1999) A Study of the Economic Consequences of Ageing in the Maltese Islands (DPhil Thesis). R.L. Clark, R.V Burkhauser, M. Moon, J.F. Quinn and T.M. Smeeding , The economics of an Aging Society, Blackwell Publishing, 2004. Abel, A. (2001) "Will bequests attenuate the predicted meltdown in stock prices when baby boomers retire." Cambridge, MA, Wharton School of the University of Pennsylvania and the National Bureau of Economic Research. Federal Reserve Bank of Philadelphia Working Paper No. 01-2. January. Ahn, S. and P. Hemmings (2000) "Policy influences on economic growth in oecd countries." Paris, OECD. Economics Department Working Paper ECO/WKP(2000) June. Auer, P. and M. Fortuny (2000) "Ageing of the labour force in OECD countries: Economic and social consequences." Geneva, International Labour Office. Employment Paper 2000/2. 2000.. Becker, G. and R. Barro (1988) "A reformulation of the economic theory of fertility." Quarterly Journal of Economics 103(1): 1-25. Blondal, S. and S. Scarpetta (1998) "The retirement decision in OECD countries." Paris, OECD. Economics Department Working Paper No. 202. February. Bloom, David E., David Canning and Bryan Graham (2002) "Longevity and life cycle savings." Cambridge MA, National Bureau of Economic Research Working Paper. Working Paper 8802. March. Borsch Supan, A. (1996) "The impact of population ageing on savings, investment and growth in the OECD area." in Organisation-for-Economic-Co-operation ed Future global capital shortages: Real threat or pure fiction? (Paris: OECD): 103-141. Borsch-Supan, A., A. Ludwig, and J. Winter (2001) "Aging, pension reform, and capital flows: A multi-country simulation model." Mannheim, Mannheim Research Institute for the Economics of Aging. Working Paper. November. Burkhauser, R., K. Cahill, J. Quinn, and R. Weathers (1998) "Microeconomic analysis of the retirement decision: United States." Paris, OECD. Economics Department Working Paper No. 203. July. Campbell, J. (1993) "Physiology and health status of the elderly." in P. Koopman-Boyden ed New Zealand's ageing population: The implications (Wellington: Daphne Brasell Associates Press). Cantor, R. and F. Packer (1996) "Determinants and impact of sovereign credit ratings." Federal Reserve Bank of New York Economic Policy Review (formerly Federal Reserve Bank of New York Quarterly Review) (October). Claus, I., D. Haugh, G. Scobie, and J. Tornquist (2001) "Saving and growth in an open economy." Wellington, The Treasury. Working Paper 01/32. http://www.treasury.govt.nz/publications/research-policy/wp/2001/01-32 Creedy, J. (1995) The Economics of Higher Education: An Analysis of Taxes Versus Fees. (Aldershot, Edward Elgar Publishing). Creedy, J., ed. (1995) The Economics of Aging. (Aldershot, Edward Elgar Publishing). Creedy, J. (1998) Pensions and Population Ageing: An Economic Analysis. (Aldershot, Edward Elgar Publishing). Creedy, J. and R. Disney (1992) "Financing state pensions in alternative pay-as-you-go schemes." in J. Creedy ed The Economics of Ageing (Aldershot, Edward Elgar). Creedy, J. and J. Alvarado (1998)"Social expenditure projections: a stochastic approach. Australian Economic Papers 37(3):203-212. De Long, B. and L. Summers (1991) "Equipment investment and economic growth." Quarterly Journal of Economics 106(2):445-502. Disney, R. (1996) Can we afford to grow older? (Cambridge MA: The MIT Press). Dixon, S. (1996) "Labour force participation over the last ten years." Labour Market Bulletin 1996(2): 71-88. European Commission Economic Policy Committee (2001) "Budgetary challenges posed by ageing populations: The impact on public spending on pensions, health and long-term care for the elderly and possible indicators of the long-term sustainability of public finances." Brussels, European Commission. EPC/ECFIN/655/01-EN. 24 October. Faruqee, Hamid (2002) "Population aging and its macroeconomic implications:a framework for analysis". Washington DC: International Monetary Fund. Working Paper No. 02/16, February. Haider, S. and D. Loughran (2001) "Elderly labour supply: Work or play?" Boston, Center for Retirement Research at Boston College. CRR Working Paper 2001-04. September. Heller, P.J. , R. Hemming and P.W. Kohnert (1986) "Ageing and Social expenditure in the major industrial countries: 1980-2025". Washington DC, IMF Occasional Paper No 47. Higgins, M. (1998) "Demography, national savings and international capital flows". International Economic Review. 39(2):343-369. Lee, R. and R. Edwards (2001) "The fiscal impact of aging in the US: Assessing the uncertainties." Washington DC, National Bureau of Economic Research. Working Paper prepared for the NBER Tax Policy and the Economy Meeting, November 5. Lee, R. and T. Miller (2001) "An approach to forecasting health expenditures, with application to the US medicare system." Berkeley, CA, University of California. A paper prepared for the workshop on Population Ageing and Health. January. Lumsdaine, R. (1995) "Factors affecting labor supply decisions and retirement income." Cambridge MA, National Bureau of Economic Research Working Paper. 5223. August 1995. Mare, D., W. Choy, and P. Mawson (2001) "Modelling regional labour market adjustment in NZ." Wellington, The Treasury. Forthcoming Working Paper. McClellan, M. (1996) "Medicare reimbursement and hospital growth." in D. Wise ed Advances in the economics of aging (Chicago: University of Chicago Press). Organisation for Economic Co-operation and Development (1988) Ageing populations - the social policy implications. (Paris: OECD). Poterba, J. (1998) "Demographic structure and asset returns: an empirical investigation." Cambridge MA. National Bureau of Economic Research. Working Paper W6774. October. Poterba, J. (2000) "Population age structure and asset returns." Boston, MA, Harvard University. Review of Economics and Statistics Lecture. December. Razin, A., E. Sadka, and P. Swagel (2001) "The aging population and the size of the welfare state." Cambridge MA, National Bureau of Economic Research. Working Paper 8405. July. Welch, F. (1979) "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust" in J. Creedy ed. The Economics of Ageing (Aldershot, Edward Elgar, 1995). |
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| STUDY-UNIT TYPE | Lecture and Presentation | |||||||||
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| LECTURER/S | Godwin Mifsud Philip Von Brockdorff (Co-ord.) |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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