Pensions and Pension Funding (4 vols)

Edited by Martin Sullivan

© 2007 – Routledge

1,641 pages

Purchasing Options:
Hardback: 9780415384322
pub: 2007-06-27
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About the Book

For more than fifty years, pensions have been the subject of academic enquiry and controversy. Debates have raged over, amongst other things, the need for pensions, the means by which they might be delivered, their implications for the public finances, their impact on an individual’s employment motivations and their significance for national and global capital markets. These debates, and others, have spawned a vast and disparate literature.

Currently, the issue that most often exercises the minds of academics and policy makers is that of pension reform. It is widely recognized that decades of social and economic change have rendered obsolete the pension arrangements in many developed and developing countries. The question of what now constitutes an appropriate set of pension arrangements is, however, far from settled. Opinions are divided over whether existing national pension systems can be modified to make them fit contemporary needs and circumstances, or whether they should be jettisoned in favour of something entirely different.

Central to the analysis of many issues in pension provision is the universal phenomenon of population ageing. Around the world, falling birth rates and rising life expectancy are raising the ratio of elderly to working-age people. For several decades the literature on pensions and population ageing has been extremely negative. Recently, though, a series of books and papers have appeared which argue for a more benign, less pessimistic, interpretation of population ageing.

The papers and articles included in each volume of this new Routledge Major Work have been selected so as to reflect the multi-dimensional nature of the subject and the interest it has aroused internationally. With a full index and an introduction newly written by the editor, this four-volume collection is a unique and valuable research resource for both student and scholar alike.

Table of Contents



General Introduction: ‘Pensions and Pension Funding’

Introduction to Volume I: ‘The Promise of Pensions’

1. Paul A. Samuelson, ‘An Exact Consumption Loan Model of Interest With or Without the Social

Contrivance of Money’, Journal of Political Economy, 66, 1958, December, pp. 467–82.

2. Henry J. Aaron, ‘The Social Insurance Paradox’, Canadian Journal of Economic and Political

Science, 32, 1966, pp. 371–4.

3. Philip A. Neher, ‘Peasants, Procreation, and Pensions’, American Economic Review, 61, 1971,

pp. 380–9.

4 Peter A. Diamond, ‘A Framework for Social Security Analysis’, Journal of Public Economics, 8,

1977, December, pp. 275–98.

5. Thomas L. Pogue and L. G. Sgontz, ‘Social Security and Investment in Human Capital’, National

Tax Journal, 30, 2, 1977, pp. 157–69.

6. Helmut Cremer, Denis Kessler, and Pierre Pestieau, ‘Intergenerational Transfers within the

Family’, European Economic Review, 36, 1992, pp. 1–16.

7. Daniel S. Hamermesh, ‘Consumption During Retirement: The Missing Link in the Lifecycle’,

Review of Economics and Statistics, 66A, 1984, pp. 1–7.

8. Vincent Crawford and David Lilien, ‘Social Security and the Retirement Decision’, Quarterly

Journal of Economics, 1981, August, pp. 505–29.

9. Peter G. Peterson, ‘Gray Dawn: The Global Aging Crisis’, Foreign Affairs, 1999,

January/February, pp. 42–55.

10. Susan St John, ‘Pension Provision in New Zealand’, in R. Disney, and P. Johnson (eds.),

Pension Systems and Retirement Incomes Across OECD Countries, (Edward Elgar, 2001), pp. 260–95.

11. A. P. Huijser, ‘Capital Market Effects of the Ageing Population: The Dutch Pension System in

the Long Run’, European Economic Review, 34, 1990, pp. 987–1009.

12. Kazutoshi Miyazawa, ‘Public Pensions and Take-off’, Journal of Pension Economics and

Finance, 2, 1, 2003, pp. 25–39.

13. Alan Auerbach, Jagadeesh Gokhale, and Laurence J. Kotlikoff, ‘Generational Accounting: A

Meaningful Way to Evaluate Fiscal Policy’, Journal of Economic Perspectives, 8, 1, 1994, pp.


14. James P. Smith, ‘Trends and Projections in Income Replacement during Retirement’, Journal of

Labour Economics, 21, 4, 2003, pp. 755–81.

15. William G. Gale, ‘The Effects of Pensions on Household Wealth: A Re-evaluation of Theory and

Evidence’, Journal of Political Economy, 106, 1998, pp. 706–23.

16. Laurence Kotlikoff and A. Spivak, ‘The Family as an Incomplete Annuities Market’, Journal of

Political Economy, 89, 2, 1981, pp. 372–91.

17. Martin Feldstein, ‘Social Security, Induced Retirement, and Aggregate Capital Accumulation’,

Journal of Political Economy, 82, 5, 1974, pp. 905–26.

18. B. Douglas Bernheim, Jonathan Skinner, and Steven Weinberg, ‘What Accounts for the Variation

in Retirement Wealth Among U.S. Households?’, American Economic Review, 91, 4, 2001, pp. 832–57.

19. E. Davis, ‘The Development of Pension Funds: An International Comparison’, Bank of England

Quarterly Review, 31, 1992, pp. 380–90.

20. Jayasri Dutta, Sandeep Kapur, and J. Michael Orszag, ‘A Portfolio Approach to the Optimal

Funding of Pensions’, Economics Letters, 69, 2000, pp. 201–6.




Introduction: ‘Working For Pensions’

21. Zvi Bodie, Alan J. Marcus, and Robert C. Merton, ‘Defined Benefit Versus Defined

Contribution Plans: What are the Real Trade-offs?’, in Z. Bodie, J. Shoven and D. Wise (eds.),

Pensions in the U.S. Economy (University of Chicago Press, 1988), pp. 139–60.

22. Zvi Bodie, ‘Pensions as Retirement Income Insurance’, Journal of Economic Literature, 28, 1,

1990, pp. 28–49.

23. Jeremy I. Bulow, ‘What are Corporate Pension Liabilities?’, Quarterly Journal of Economics,

97, 1982, pp. 435–52.

24. Richard Ippolito, ‘The Labor Contract and True Economic Pension Liabilities’, American

Economic Review, 75, 5, 1985, pp. 1031–43.

25. Edward Lazear, ‘Why is there Mandatory Retirement?’, Journal of Political Economy, 87, 6,

1979, pp. 1261–84.

26. George G. Pennacchi and Christopher M. Lewis, ‘The Value of Pension Benefit Guaranty

Corporation Insurance’, Journal of Money, Credit and Banking, 26, 1994, pp. 735–53.

27. Zvi Bodie, ‘What the Pension Benefit Guaranty Corporation can Learn from the Federal Savings

and Loan Insurance Corporation’, Journal of Financial Services Research, 10, 1996, pp. 83–100.

28. David McCarthy and Anthony Neuberger, ‘Pricing Pension Insurance: The Proposed Levy

Structure for the Pension Protection Fund’, Fiscal Studies, 26, 4, 2005, pp. 471–89.

29. Alicia H. Munnell and Mauricio Soto, ‘The Outlook for Pension Contributions and Profits in

the U.S.’, Journal of Pension Economics and Finance, 3, 1, 2002, pp. 77–97.

30. Barry McCormick and Gordon Hughes, ‘The Influence of Pensions on Job Mobility’, Journal of

Public Economics, 23, 1984, pp. 183–206.

31. Vincenzo Andrietti, ‘Occupational Pensions and Job Mobility in the European Union’, in O.

Castellino and E. Fornero (eds.), Pension Policy in an Integrating Europe (Edward Elgar, 2003),

pp. 198–223.

32. David A. Wise, ‘Firm Pension Policy and Early Retirement’, in A Atkinson and M Rein (eds.),

Age, Work and Social Security (Macmillan, 1993), pp. 51–88.

33. Alan L. Gustman and Thomas L. Steinmeier, ‘Pension Portability and Labor Mobility’, Journal

of Public Economics, 50, 1993, pp. 299–323.

34. Edwin Hustead, ‘Trends in Retirement Income Plan Administrative Expenses’, in O. Mitchell

and S. Schieber (eds.), Living with Defined Contribution Pensions (University of Pennsylvania

Press, 1998), pp. 166–77.

35. Olivia Mitchell, ‘Worker Knowledge of Pension Provisions’, Journal of Labor Economics, 6, 1,

1988, pp. 21–39.

36. E. Philip Davis, ‘Pension Fund Investments’, in Ben Steil (ed.), The European Equity

Markets: The State of the Union and an Agenda for the Millennium (London: The Royal Institute of

International Affairs, 1996), pp. 185–223.

37. Noora Alestalo and Vesa Puttonen, ‘Asset Allocation in Finnish Pension Funds’, Journal of

Pension Economics and Finance, 5, 1, 2006, pp. 27–44.




Introduction: ‘Do-It-Yourself Pensions’

38. Richard Kaplan, ‘Retirement Funding and the Curious Evolution of Individual Retirement

Accounts’, Elder Law Journal, 7, 1999, pp. 283–311.

39. Richard Disney and Edward Whitehouse, ‘Personal Pensions and the Review of the

Contracting-Out Terms’, Fiscal Studies, 13, 1, 1992, pp. 38–53.

40. Alicia Munnell, ‘Private Pensions and Saving: New Evidence’, Journal of Political Economy,

84, 5, 1976 pp. 1013–32.

41. Martin Feldstein, ‘The Case for Privatization’, Foreign Affairs, 1997, July/August, pp.


42. Jane G. Gravelle, ‘Do Individual Retirement Accounts Increase Savings?’, Journal of Economic

Perspectives, 5, 2, 1991, pp. 133–48.

43. William G. Gale and John K. Scholz, ‘IRAs and Household Savings’, American Economic Review,

84, 5, 1994, pp. 1233–60.

44. Andrew Samwick and Jonathan Skinner, ‘Abandoning the Nest Egg? 401(k) Plans and Inadequate

Pension Saving’, in Sylvester Schieber and John Shoven (eds.), Public Policy Toward Pensions

(Cambridge: MIT Press, 1997), pp. 197–217.

45. James M. Poterba, ‘Portfolio Risk and Self-Directed Retirement Saving Programmes’, The

Economic Journal, 114, 2004, pp. 26–51.

46. Emma Grainge, Joanne Segars and Chris Curry, ‘One Year On: Stakeholders Revealed’, Insurance

Trends, 33, 2002, pp. 1–12.

47. Surachai Khitatrakun and John K. Scholz, ‘Saving Incentives in the U.S.’, in O. Castellino,

and E. Fornero (eds.), Pension Policy in an Integrating Europe (Edward Elgar, 2003), pp. 127–51.

48. Eric M. Engen, William G. Gale, and John Karl Scholz, ‘The Illusory Effects of Saving

Incentives on Saving’, Journal of Economic Perspectives, 10, 4, 1996, pp. 113–38.

49. H. Fred Mittelstaedt, ‘An Empirical Analysis of the Investment Performance of the Chilean

Pension System’, Journal of Pension Economics and Finance, 2, 1, 2003, pp. 7–24.

50. Hazel Bateman, and Olivia S. Mitchell, ‘New Evidence on Pension Plan Design and

Administrative Expenses: The Australian Experience’, Journal of Pension Economics and Finance,

3, 1, 2004, pp. 63–76.

51. Olivia Mitchell, James M. Poterba, M. Warshawsky, and J. Brown, ‘New Evidence on the Money’s

Worth of Individual Annuities’, American Economic Review, 89, 5, 1999, pp. 1299–318.

52. James M. Poterba, ‘Annuity Markets and Retirement Security’, Fiscal Studies, 22, 3, 2001,

pp. 249–70.

53. Wai Mun Fong, ‘On the Cost of Adverse Selection in Individual Annuity Markets: Evidence from

Singapore’, The Journal of Risk and Insurance, 69, 2, 2002, pp. 193–207.

54. Ngee C. Chia and Albert K. C. Tsui, ‘Life Annuities of Compulsory Savings and Income

Adequacy of the Elderly in Singapore’, Journal of Pension Economics and Finance, 2, 1, 2003,

March, pp. 41–65.

55. Robert Pozen and John Kimpel, ‘Investment and Administrative Constraints on Individual

Social Security Accounts’, in Olivia S. Mitchell, Robert J. Myers, and Howard Young (eds.),

Prospects for Social Security Reform (Philadelphia: University of Pennsylvania Press, 1999), pp.


56. Georges De Menil, ‘Why Should the Portfolios of Mandatory Private Pension Funds be Captive?

(The Foreign Investment Question)’, Journal of Banking and Finance, 29, 1, 2005, pp. 123–41.




Introduction: ‘The Challenge of Pension Reform’

57. Michael J. Boskin, ‘A Framework for Considering Social Security Reform’, in R. Douglas

Arnold, Michael Graetz, and Alicia Munnell (eds.), Framing the Social Security Debate (Brookings

Institution Press, 1998), pp. 29–38.

58. Richard Disney, Carl Emmerson, and M. Wakefield, ‘Pension Reform and Saving in Britain’,

Oxford Review of Economic Policy, 17, 1, 2001, pp. 70–94.

59. Edward M. Gramlich, ‘Different Approaches for Dealing with Social Security’, Journal of

Economic Perspectives, 10, 3, 1996, pp. 55–66.

60. Phil Agulnik and Nicholas Barr, ‘The Public–Private Mix in UK Pension Policy’, World

Economics, 1, 1, 2000, pp. 69–80.

61. Martin Feldstein, ‘The Missing Piece in Policy Analysis: Social Security Reform’, American

Economic Review, Papers and Proceedings, 86, 2, 1996, pp. 1–14.

62. David Miles, ‘The Implications of Switching from Unfunded to Funded Pension Systems’,

National Institute Economic Review, 163, 1998, pp. 71–86.

63. Michael Boldrin, Juan Dolado, Juan Jimeno, and Franco Peracchi, ‘The Future of Pensions in

Europe’, Economic Policy, 29, 1999, pp. 289 320.

64. Axel Borsch-Supan, ‘Pension Reform in Germany: To Fund or Not to Fund?’, World Economics, 1,

1, 2000, pp. 81–101.

65. Tatsuo Hatta and Noriyoshi Oguchi, ‘Switching the Japanese Social System from Pay-As-You-Go

to Actuarially Fair: A Simulation Analysis’, in T. Ihori and T. Tachibanaki (eds.), Social

Security Reform in Advanced Countries (Routledge, 2002), pp. 113–31.

66. Christian E. Weller, ‘Raising the Retirement Age: The Wrong Direction for Social Security’,

Economic Policy Institute, Briefing Paper (Washington DC, September 2000).

67. Estelle James, ‘How Can China Solve its Old-Age Security Problem? The Interaction Between

Pension, State Enterprise and Financial Market Reform’, Journal of Pension Economics and

Finance, 1, 1, 2002, pp. 53–75.

68. Armando Barrientos, ‘Pension Reform, Personal Pensions and Gender Differences in Pension

Coverage’, World Development, 26, 1, 1998, pp. 125–37.

69. Amy Finkelstein and James M. Poterba, ‘Selection Effects in the United Kingdom Individual

Annuities Market’, Economic Journal, 112, 2002, pp. 28–50.

70. Charles Yuji Horioka, ‘Japan’s Public Pension System: What’s Wrong With It and How to Fix

It’, Japan and the World Economy, 11, 1999, pp. 293–303.

71. Sergio Cesaratto, ‘Transition to Fully Funded Pension Schemes: A Non-Orthodox Criticism’,

Cambridge Journal of Economics, 30, 2006, pp. 33–48.

72. Toshihiro Ihori, ‘Pensions Contributions and Capital Accumulation Under Modified Funded

Systems’, in T. Ihori and T. Tachibanaki (eds.), Social Security Reform in Advanced Countries

(Routledge, 2002), pp. 261–80.

73. David Miles and Allan Timmermann, ‘Risk Sharing and Transition Costs in the Reform of

Pension Systems in Europe’, Economic Policy, 29, 1999, pp. 253–86.

74. Peter Diamond, ‘Reforming Public Pensions in the US and the UK’, The Economic Journal, 116,

2006, pp. 94–118.

75. Friedrich Breyer and Martin Straub, ‘Welfare Effects of Unfunded Pension Systems When Labor

Supply is Endogenous’, Journal of Public Economics, 50, 1993, pp. 77–93.

About the Editor

Martin Sullivan is a senior lecturer in economics at the University of the West of England. His research interests are mainly focused on the economics of public and private pension provision. He is a member of the Institute for Fiscal Studies and an occasional writer of newspaper articles on the subject of pensions and retirement income provision.

About the Series

Critical Perspectives on the World Economy

As the world economy enters the new century it is undergoing the most dramatic structural changes since the Second World War. These are marked by:

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Each set contains a comprehensive new introduction by a leading expert in the field, and a selection of key material arranged according to major themes. The Critical Perspectives are an essential resource for those interested in the changing global economy including economists, policy makers and students of international business and international relations.

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