Chun.Chun evaluates the effects of population aging and fiscal policies on national saving in Korea. To predict the national savings This article is about the economic term. For the United Kingdom government-run savings institution previously known as National Savings, see National Savings and Investments. rate for Korea over the next several decades, he uses a life-cycle model that incorporates the generational accounting approach needed to assess the distribution of fiscal burden across generations. He finds that rapid population aging and long-term budgetary imbalance imbalance /im·bal·ance/ (im-bal´ans) 1. lack of balance, such as between two opposing muscles or between electrolytes in the body. 2. dysequilibrium (2). will substantially lower the national savings rate in Korea. In addition, estimation results for consumption functions with respect to various kinds of wealth suggest that the annuitization of wealth because of the maturing of public pensions and the introduction of reverse annuity mortgages reverse annuity mortgage A mortgage in which a homeowner's equity is gradually depleted by a series of payments from the mortgage holder to the homeowner. Thus, a reverse annuity mortgage increases in size as the annuity payments continue. is likely to further decrease the savings rate Savings rate Personal savings as a percentage of disposable personal income. in the future. |
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