Financing retirement pensions: Pay-as-you-go and funded systems in the European Union

The techniques used to finance retirement pensions in the European Union are extremely varied, as are schemes'institutional frameworks. The standard distinction between pay-as-you-go and funded systems obscures the fact that there are four main types of schemes, each with very distinct methods of regulation and conditions of long-term viability. An analysis of the current procedures reveals the extent to which the schemes'ways of operating differ, and points to considerable variations in the way the social actors participate in the process of regulation. The adaptation of pension systems to new realities is dependent on factors which go far beyond a simple choice between two basic methods of financing.     

Pensions in the European Union: Adapting to Economic and Social Changes

Throughout the European Union, pension schemes are undergoing a process of adaptation to a completely different context. Some of the main stumbling blocks to this process are the great number of issues involved and the diversity of questions that these raise: demographic changes, the labour market, economic growth, social justice, the ways of regulating the established provisions and decision-making in their regard. These dimensions do not offer ready-made answers, from the standpoint of pension financing. Apart from the complexity of the situation, however, a fundamental component of European societies is definitely at stake here: the ability to guarantee a decent level of security to all citizens when they reach retirement age.     

Stability of risk preference measures: results from a field experiment on French farmers

We compare two different elicitation methods for measuring risk attitudes on a sample of French farmers. We consider the lottery tasks initially proposed by Holt and Laury (Econ Rev 92:1644?C1655, 2002) and by Eckel and Grossman (Evol Hum Behav 23:281?C295, 2002; J Econ Behav Org 68:1?C7, 2008). The main empirical result from this within-subject study is that risk preference measures are affected by the type of mechanism used. We first show that this risk preference instability can be related to non-expected utility preferences of farmers. Using a risk-taking psychometric questionnaire, we then demonstrate that risk preferences of farmers are context-dependent. This may be another explanation of the observed risk preference instability.     

A time series of urban forestry in Los Angeles

There has been an increasing interest in the evolution of urban forests. This research uses historic and digital aerial photography to quantify changes in tree density in Los Angeles, California since the 1920’s. High-resolution geographic information system analysis (4 to 6 time periods) of three regions (San Fernando Valley, Hollywood, Los Angeles Basin) of Los Angeles reveals that there has not always been an increase in tree density with time. Tree densities on public and private land were highest in the 1940’s in Hollywood, while the San Fernando Valley and Los Angeles Basin experienced a near linear increase in tree density on both private and public land since the 1920’s. When historic tree density reconstructions were examined for the 15 Los Angeles city council districts from the 1920’s, 1950’s and 2006, most districts in Los Angeles have experienced a significant increase in tree density, however, there has been wide variation in tree densities among city council districts. Trees densities have generally been higher on private land since the 1920’s and currently tree densities on private land are significantly higher than on public land. Results suggest the evolution of urban forests in Los Angeles mirrors the dynamics of urban forests in desert and grassland cities. It is possible to reconstruct the development of urban forests in sections of cities using historic and contemporary aerial photography. We estimated that Los Angeles averages approximately 104 trees per hectare (82 private land, 22 public land) based on 2006 imagery at 0.3 m resolution, however, field validation suggests that we identified only 73% of trees. Although there is still space to plant trees on public land, private land owners will need to be heavily involved in order to achieve the goals of Los Angeles’ Million Tree Initiative.     

Niveau de comportement et prise de conscience en psychologie economique

Mental level and grasp of consciousness in economic behaviour. In economic psychology mental level is one of the most useful parameters. This notion provides a solution for the construction of a general model, and can also be applied to several specific questions. The idea of grasp of consciousness is the “internal” or ‘subjective” aspect of these studies relating to economic efficiency. But, in this context, interdisciplinary research is necessary and this has been made possible by the many surveys carried out, among others, by the Laboratory of Economic Psychology of the University of Strasbourg during the last twenty-seven years, in different countries of Europe, Africa and Asia.The concept of mental level allows utilisation of models: simplication, synthesis of quantitative and qualitative factors, and the careful selection of statistical and psychological data are necessary for a positive work. In each country we consider the situation of groups, such as provinces, corporations, enterprises and families, and the notation of mental level explains the principles of behaviour. We observe important thresholds of dynamism between these groups.Grasp of consciousness is a notion that enables further explanation: here, studies and observations are related with the mechanism of degrees of rationality. If the level of consciouness is low, the judgement includes little information, the choices and the forecase do not take into account all the factors. Economic growth and equilibrium are not satisfactory. It is possible to give many examples of this situation. Surveys in Greece and Portugal show the importance of the crossin of thresholds. “Economic horizon” is larger and information better after the period of transition.A second point concerns relative dépendance of this parameter upon external factors (stimuli). When the level of consciousness is not sufficient and rationality weak, influence of stimuli is strong. On the contrary, with high levels, considerations of personal interest are more powerful. Economic Psychology defines schemes of behaviour in the different situations. Surveys of Economic Psychology make use of methods adapted to qualitative investigations. These methods bring together measures for certain factors and notations for others. With questions on the past, present and future foreseeable life of the firm, it is possible, through good research, to determine the main features concerning an enterprise. For larger groups and for countries, the methods are parallel. Forecasting and better diagnosis are possible and qualitative surveys are good technique for improvement of applied economy.     

Italy: A fundamental transformation of the pension system

Italy completely transformed its pension system in 1995. The reform undertaken is of unequalled magnitude in industrialized countries. The main innovations introduced comprise the creation of a single scheme covering all employees, as well as the self-employed; the adoption of a new method of calculation linking the pension amount to contributions; and the introduction of a flexible retirement age. In addition, measures have been foreseen to encourage the development of funded supplementary pension provision. This reform, which will transform the Italian pensions scene, is mainly the result of an agreement signed between the government and the confederations of trade unions.