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Do private pension funds increase household consumption ? An empirical study

El Mekkaoui de Freitas, Najat; Mourougane, Annabelle; Ralle, Pierre (2002), Do private pension funds increase household consumption ? An empirical study. https://basepub.dauphine.fr/handle/123456789/6125

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Type
Document de travail / Working paper
Date
2002
Publisher
Université Paris-Dauphine
Series title
Cahiers de recherche d'EURISCO
Series number
2002-03
Published in
Paris
Pages
26
Metadata
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Author(s)
El Mekkaoui de Freitas, Najat
Mourougane, Annabelle
Ralle, Pierre
Abstract (EN)
Private pension plans are now an important source of retirement income, especially in the United Kingdom and in the United States. They play an increasing role in the economy of most of the OECD countries. Therefore, we analyse the effect of pensions on private consumption. We focus on the estimation of a ECM consumption function in the case of the United States and the United Kingdom. It is shown that pension funds would have a negative impact on households’saving ratio. However, these estimations remain fragile, given the very limited number of observations avalaible. Some preliminary estimations on panels data are then implemented, showing no impact of pension funds on private consumption.
Subjects / Keywords
private pension funds; saving; Household consumption
JEL
G23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
E21 - Consumption; Saving; Wealth
C2 - Single Equation Models; Single Variables