International trade with pensions and demographic shock

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The central question of this paper is how international trade and specialization are affected by different designs of pension schemes and asymmetric demographic changes. In a model with two goods, two countries and two production factors, we find that countries with a relatively large unfunded pension scheme will specialize in the production of labour intensive goods. If these countries are hit by a negative demographic shock, this specialization will intensify in the long run. Eventually, these countries may even completely specialize in the production of those goods. The effects spill over to other countries, which will move away from complete specialization in capital intensive goods as the relative size of their labour intensive goods sector will also increase.
LanguageEnglish
JournalJournal of Pension Economics and Finance
DOIs
StateE-pub ahead of print - Aug 2017

Fingerprint

Demographic shocks
International trade
Pensions
Pension scheme
Labor
International specialisation
Demographic change
Spillover effects
Factors

Cite this

@article{d0717c197e8a4b8283c11700b6262e30,
title = "International trade with pensions and demographic shock",
abstract = "The central question of this paper is how international trade and specialization are affected by different designs of pension schemes and asymmetric demographic changes. In a model with two goods, two countries and two production factors, we find that countries with a relatively large unfunded pension scheme will specialize in the production of labour intensive goods. If these countries are hit by a negative demographic shock, this specialization will intensify in the long run. Eventually, these countries may even completely specialize in the production of those goods. The effects spill over to other countries, which will move away from complete specialization in capital intensive goods as the relative size of their labour intensive goods sector will also increase.",
author = "I. Fedotenkov and {van Groezen}, Bas and Lex Meijdam",
year = "2017",
month = "8",
doi = "10.1017/S1474747217000282",
language = "English",
journal = "Journal of pension economics and finance",
issn = "1474-7472",
publisher = "CAMBRIDGE UNIV PRESS",

}

International trade with pensions and demographic shock. / Fedotenkov, I.; van Groezen, Bas; Meijdam, Lex.

In: Journal of Pension Economics and Finance, 08.2017.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - International trade with pensions and demographic shock

AU - Fedotenkov,I.

AU - van Groezen,Bas

AU - Meijdam,Lex

PY - 2017/8

Y1 - 2017/8

N2 - The central question of this paper is how international trade and specialization are affected by different designs of pension schemes and asymmetric demographic changes. In a model with two goods, two countries and two production factors, we find that countries with a relatively large unfunded pension scheme will specialize in the production of labour intensive goods. If these countries are hit by a negative demographic shock, this specialization will intensify in the long run. Eventually, these countries may even completely specialize in the production of those goods. The effects spill over to other countries, which will move away from complete specialization in capital intensive goods as the relative size of their labour intensive goods sector will also increase.

AB - The central question of this paper is how international trade and specialization are affected by different designs of pension schemes and asymmetric demographic changes. In a model with two goods, two countries and two production factors, we find that countries with a relatively large unfunded pension scheme will specialize in the production of labour intensive goods. If these countries are hit by a negative demographic shock, this specialization will intensify in the long run. Eventually, these countries may even completely specialize in the production of those goods. The effects spill over to other countries, which will move away from complete specialization in capital intensive goods as the relative size of their labour intensive goods sector will also increase.

U2 - 10.1017/S1474747217000282

DO - 10.1017/S1474747217000282

M3 - Article

JO - Journal of pension economics and finance

T2 - Journal of pension economics and finance

JF - Journal of pension economics and finance

SN - 1474-7472

ER -