[Forside] [Hovedområder] [Perioder] [Udannelser] [Alle kurser på en side]
The aim of this course is that the student becomes able to:
• Comprehend the difference between public and private pension schemes, and to understand how policies affect pension savings.
• Identify the main mechanisms through which pension schemes are challenged by changing demographics (ageing), and the reform options.
• Clarify the extent to which demographic changes are affected by economic factors, and therefore the extent to which they affect policy setting.
• Comprehend how issues of distribution, insurance and incentive affect the policy design in various areas, and be able to identify the main effects on efficiency and equity.
• Analyse and asses how political institutions and decision processes can affect the design of pension policies and ensure fiscal sustainability, and evaluate the implications hereof.
• Understand the importance of assumptions and model structures for analytical results, and to assess how this affects the generality and applicability of the results.
• Apply the analytical tools in an independent analysis of a specific problem within the topics covered.
Most countries face significant changes in the demographic composition of the population leading to so-called ageing. This has wide economic implications for pension schemes, public finances, labour markets etc. As a consequence, public pension schemes are under pressure, and it is debated whether they should be privatized or how to ensure their financial viability. In countries with large public involvement, the issue of the financial viability of welfare arrangements is important, and many countries have concerns for fiscal sustainability as an explicit part of their policy framework. This course considers both the pros and cons of private and public pension schemes, including the rationale for having public involvement in pension savings. The drivers and effects of demographic changes are analysed, and various policy options are discussed. Since increasing longevity is an important driver of ageing, it follows that health aspects are important both in relation to the welfare consequences of ageing, but also the implied effects on the health care system and the scope for extending work life alongside increases in longevity. Policy strategies to cope with ageing populations are discussed.
Topics:
I. The economics of public and private pension schemes
II. The rationale for public pension schemes
III. Demographic changes and their impact on pension schemes
IV. Fiscal sustainability
V. Health, longevity and labour supply
VI. Policy strategies to deal with changing demographics
REQUIRED COURSES (progression): BSc degree in economics; 7005 Macro 1; 7010 Micro 1.
Torben M. Andersen
4 lectures per week
English
To be announced
FORM OF ASSESSMENT: 4 hour written exam
EXAMINATION AIDS ALLOWED: All - except any electronic communication means including calculators, mobile phones and PC's. A simple calculator will be provided to the students at the exam.
