Year: 2000
Author: Catalan, Mario, Impavido, Gregorio, Musalem, Alberto R.
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 120 (2000), Iss. 3 : pp. 445–487
Abstract
This paper studies the relationship between the development of contractual savings (assets of pension funds and life insurance companies) and capital markets. The focus is on the macroeconomic and financial effects of contractual savings' development. New theoretical ideas and empirical results are presented. At the theoretical level, we explain how the growth of the contractual savings sector promotes financial development and economic growth through different channels. We argue that among institutional investors, contractual savings institutions are the most effective at developing capital markets. What is different about contractual savings is that their liabilities are long-term and illiquid ones in asset holders' portfolios. At the empirical level, we analyze Granger causality between contractual savings and both market capitalization and value traded in stock markets for some OECD and other countries. The evidence suggests that the growth of contractual savings cause the development of capital markets.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.120.3.445
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 120 (2000), Iss. 3 : pp. 445–487
Published online: 2000-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 43
Author Details
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AN OVERVIEW OF VOLUNTARY PRIVATE PENSION FUNDS IN TURKEY
KAYHAN, Fatih
TOGAN EĞRİCAN, Aslı
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