https://www.um.edu.mt/library/oar/handle/123456789/16882 Mon, 06 Apr 2026 06:31:06 GMT 2026-04-06T06:31:06Z https://www.um.edu.mt/library/oar/handle/123456789/33545 Title: Pension policy design : the core issues Authors: Grech, Aaron George Abstract: The last two decades have been characterised by significant changes in national pension arrangements. While at first, a consensus seemed to be evolving around a one-size-fits-all reform, more recently the trend has been towards a better customisation of reforms. This paper reviews this process, focusing on five pension policy design issues. These are how policymakers have sought to optimise poverty alleviation effectiveness; the redefinition of the state’s role in smoothing incomes over the life-course; the balancing of contributions to benefits; adjusting the system to be more responsive to demographic, economic and social changes; and ensuring that reforms will be long-lasting. While the role of state pensions still appears to be on a diminishing path, there has been a growing realisation of the need to ensure that they remain adequate. This has led to the setting up of innovative minimum pension schemes and credits for periods of childcare and unemployment. The expanding role of private pensions has also led governments to intervene more in their operation. Policymakers have shown strong interest in automatic adjustment mechanisms, to try to bring about required economic changes. However there is greater understanding that for the latter to happen, the state has to engage more with its citizens. While changes in pension systems can help societies respond to the ageing transition, for instance by removing incentives to retire too early or by aligning better the generosity of benefits to contributions made, there will need to be a much broader policy response. Wed, 01 Jan 2014 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/33545 2014-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/33544 Title: The demand for currency in Malta Authors: Grech, Aaron George Abstract: This article studies the demand for one particular component of the money stock, currency, in Malta in the light of the existing theoretical and empirical frameworks. In particular, it argues that the commonly applied analytical framework needs to be tweaked slightly for it to explain better the reasons underpinning the relatively high currency demand in Malta compared with other euro area countries. In particular, the presence of a large tourism sector is likely to be boosting demand beyond what one would expect. Similarly the presence of a significant shadow economy appears to be exerting some influence on the magnitude of currency holdings. That said, this study suggests that there is scope for a number of policies which could lead to lower demand for notes, particularly measures to facilitate the use of electronic means of payment and efforts to discourage the shadow economy. Sat, 01 Feb 2014 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/33544 2014-02-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/33486 Title: French and German tourism in the Mediterranean – a market share analysis Authors: Gatt, William; Falzon, Joseph Abstract: Tourism is an important economic sector for Mediterranean countries, and these compete for market share. In our study we look at the evaluation of market shares amongst a group of seven Mediterranean countries for both German and French tourists. Our data shows that these shares have changed significantly over the period 1963-2009. We utilise the Almost Ideal Demand System, a model grounded in economic theory, to understand what has driven these changes. The estimated own-price elasticities indicate the sensitivity of demand to price increases in each country, while cross-price elasticities shed light on the relative complementarity and substitutability of the holiday destinations. We find that while Spain was relatively unaffected by the development of the tourism market in countries such as Cyprus, Malta and Turkey, Italy lost significant market share, in part due to a relative loss of competitiveness. An innovation of this study is an assessment of the stability of the elasticity estimates over the sample. In line with other studies in this area, we highlight that the results of this study can serve as useful information for policymakers in the formulation of policies on tourism market development. Wed, 01 Jan 2014 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/33486 2014-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/33249 Title: The determinants of household saving behaviour in Malta Abstract: This study analyses the determinants of the aggregate household saving rate in Malta; an important macroeconomic variable which in standard short-term analysis is considered as a ‘residual’. The aggregate household saving rate, fluctuated significantly over the past thirteen years, rising from 6.4% in 2000 to 10.3% by 2002, falling significantly to 4.1% by 2006, doubling to 8.4% during 2007 and stabilising between 5% and 7% in the years 2008 to 2012. Such sharp swings warrant an investigation to uncover the underlying drivers, and this paper finds evidence that the estimate of the saving rate correlates with a set of macroeconomic variables The results of an estimated equation are in line with the theory and robust to different estimation techniques. One should keep in mind that there are no official statistics on disposable income and therefore this paper uses an in-house estimate of disposable income, which may be subject to measurement errors. Wed, 01 Jan 2014 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/33249 2014-01-01T00:00:00Z