Torben M. Andersen
YOU?
Author Swipe
View article: Old‐Age Saving in a Welfare State
Old‐Age Saving in a Welfare State Open
We address the reasons why retirees continue saving well into old age. We contribute to the literature by studying the saving behavior of retirees in a country where health care is free of charge as well as nursing homes. This removes some…
View article: Hedging mortality risk over the life‐cycle—The role of information and borrowing constraints
Hedging mortality risk over the life‐cycle—The role of information and borrowing constraints Open
Many pension schemes offer annuities pooling mortality risk across members. Such pooling has been criticized for having a regressive bias benefitting risk classes with the longest expected longevity. However, knowledge on mortality risk un…
View article: Pension reform and wealth inequality: Theory and evidence
Pension reform and wealth inequality: Theory and evidence Open
A growing literature explores reasons for rising wealth inequality, but is mostly silent on the role of pension systems despite their well-understood influence on life-cycle savings. This paper develops a simple life-cycle model to lay bar…
View article: Pension system design: roles and interdependencies of tax-financed and funded pensions
Pension system design: roles and interdependencies of tax-financed and funded pensions Open
The purpose of this paper is to give an overview of the roles, objectives, and trade-offs in a two-pillar pension system consisting of tax-financed, public pensions and defined contribution, individual pensions. A pension system has many m…
View article: Nordic Economic Policy Review 2024: Fiscal Policy in Uncertain Times
Nordic Economic Policy Review 2024: Fiscal Policy in Uncertain Times Open
This paper discusses recent research on the distribution of income and wealth as determinants of fiscal multipliers and the implications for economic policy in the Nordic countries. Economies with higher wealth inequality or lower income i…
View article: The interdependencies between the private and public sectors in open economies
The interdependencies between the private and public sectors in open economies Open
Empirical evidence shows that countries with larger public sectors also have larger trade shares and a larger share of firms that export. These links between the public and the private sector are reconciled in an analytically tractable gen…
View article: The Danish labor market, 2000–2022
The Danish labor market, 2000–2022 Open
Denmark is often highlighted as a "flexicurity" country with lax employment protection legislation, generous unemployment insurance, and active labor market policies. This model has coped with the Great Recession and the Covid-19 pandemic,…
View article: The Danish Pension System
The Danish Pension System Open
The need for pension reform is widely discussed against the backdrop of falling fertility rates and rising longevity. These developments challenge pension systems which in many countries already encounter problems with pension adequacy and…
View article: Economic policy lessons from two years with the Covid-19 pandemic
Economic policy lessons from two years with the Covid-19 pandemic Open
The paper provides a discussion and summary of the main economic policy lessons learned from the Covid-19 pandemic. First, we discuss how managing the series of partial restrictions on activity and reopenings since March 2020 involves a co…
View article: EEAG Report on the European Economy 2022 - Economic Policy for the Next Decade: A Changed Role of Governments?
EEAG Report on the European Economy 2022 - Economic Policy for the Next Decade: A Changed Role of Governments? Open
The coronavirus crisis has shaped economic policy in a way that differs from the policies that prevailed before the crisis, bringing to the fore political challenges such as climate change, technological change, aging, and inequality, but …
View article: Economic developments and policies during the COVID-19 crisis – Nordic experiences
Economic developments and policies during the COVID-19 crisis – Nordic experiences Open
The paper reviews economic developments and policy measures in the Nordic countries during the pandemic focusing in particular on the unconventional policies deployed to protect incomes, jobs, and firms in the short run. The recession was …
View article: Pension adequacy and sustainability : An evaluation of the Finnish pension system
Pension adequacy and sustainability : An evaluation of the Finnish pension system Open
An international and independent evaluation of the Finnish pension system conducted by Professor Torben M. Andersen (Aarhus University) at the request of the Finnish Centre for Pensions.
\n
\nAvailable only online.
View article: Reference-dependent preferences, time inconsistency, and pay-as-you-go pensions
Reference-dependent preferences, time inconsistency, and pay-as-you-go pensions Open
The classic Aaron–Samuelson result argues that pay-as-you-go (PAYG) pension schemes cannot coexist with higher-return, private, retirement-saving schemes. The ensuing literature shows if agents voluntarily undersave for retirement due to m…
View article: Pareto-improving transition to fully funded pensions under myopia
Pareto-improving transition to fully funded pensions under myopia Open
Under dynamic efficiency, a pay-as-you-go (PAYG) pension scheme helps the current generation of retirees but hurts future generations because they are forced to save via a return-dominated scheme. Abandoning it is deemed welfare-improving …
View article: Consistent Local Spectrum (LCM) Inference for Predictive Return Regressions
Consistent Local Spectrum (LCM) Inference for Predictive Return Regressions Open
This paper studies the properties of predictive regressions for asset returns in economic systems governed by persistent vector autoregressive dynamics.In particular, we allow for the state variables to be fractionally integrated, potentia…
View article: Reference‐dependent preferences, time inconsistency, and pay‐as‐you‐go pensions
Reference‐dependent preferences, time inconsistency, and pay‐as‐you‐go pensions Open
The classic Aaron–Samuelson result argues that pay‐as‐you‐go (PAYG) pension schemes cannot coexist with higher‐return, private, retirement‐saving schemes. The ensuing literature shows if agents voluntarily undersave for retirement due to m…
View article: The Interdependencies between the Private and Public Sectors in Open Economies
The Interdependencies between the Private and Public Sectors in Open Economies Open
Empirical evidence shows that countries with larger public sectors also have larger trade shares, also for the manufacturing sector, and a larger share of firms that export. We reconcile these links between the public and private sector in…
View article: The Danish labor market, 2000–2020
The Danish labor market, 2000–2020 Open
Denmark is often termed a "flexicurity" country with lax employment protection legislation, generous unemployment insurance, and active labor market policies. This model is not a safeguard against business cycles, but has coped with the Gr…
View article: Beyond the Coronavirus Crisis: Investing for a Viable Future
Beyond the Coronavirus Crisis: Investing for a Viable Future Open
The coronavirus crisis has led to the sharpest economic downturn in modern times and poses unparalleled challenges to policy both on a national and an EU level, as well as globally. The European Union has launched the ground-breaking Next …
View article: JOB DURATION AND HISTORY-DEPENDENT UNEMPLOYMENT INSURANCE
JOB DURATION AND HISTORY-DEPENDENT UNEMPLOYMENT INSURANCE Open
Unemployment insurance schemes typically include eligibility conditions comprising the employment history prior to becoming unemployed, an aspect largely neglected in the literature. We develop an analytically tractable matching model incl…