Publication:
Contractual Savings or Stock Market Development—Which Leads?

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dc.contributor.authorCatalan, Mario
dc.contributor.authorImpavido, Gregorio
dc.contributor.authorMusalem, Alberto R.
dc.date.accessioned2015-01-30T15:18:32Z
dc.date.available2015-01-30T15:18:32Z
dc.date.issued2000-08
dc.description.abstractThe authors study the relationship between the development of contractual savings (assets of pension funds, and life insurance companies) and non-life insurance, and, the development of stock markets (market capitalization and value traded). Their contribution lies in providing time-series evidence on a hypothesis that is very popular - but had not been substantiated - among supporters of fully funded pension systems in which funds invest large shares of their portfolios in tradable securities (equities, bonds). The literature is not clear on its assumption regarding causality between contractual savings, and capital market development. A one-way or two-way relationship is assumed, usually inter-changeably; the authors address the questions of which leads empirically. They present the evidence, including descriptive statistics, and the results of Granger causality tests, for OECD countries, and such countries as Chile, Malaysia, Singapore, South Africa, and Thailand. They do not present a theoretical framework, but do explain how the growth of the contractual savings sector, is thought to promote financial development. The authors find evidence in the data that causality between institutions, and markets either does not exist, or, if it exists, runs predominantly from institutions to markets. To a lesser extent, there is simultaneous causality between institutions, and markets. Furthermore, there is limited evidence that causality runs only from markets to institutions (the only exception seems to be for non-life insurance in developing countries). Results seem to support the idea that the development of institutional investors, is likely to promote the growth of market capitalization, more than that of value traded. In developing countries, there seems to be no causality from pension funds to growth in value traded, while there is causality from life, and non-life insurance.en
dc.identifier.doi10.1596/1813-9450-2421
dc.identifier.urihttps://hdl.handle.net/10986/21366
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2421
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectadverse selection
dc.subjectaggregate demand
dc.subjectassets
dc.subjectbalance sheets
dc.subjectbank deposits
dc.subjectbank loans
dc.subjectbank run
dc.subjectbank runs
dc.subjectbanking regulation
dc.subjectbanking sector
dc.subjectbanking system
dc.subjectbankruptcy
dc.subjectbanks
dc.subjectbonds
dc.subjectcapital markets
dc.subjectcapitalization
dc.subjectcentral bank
dc.subjectcontractual saving
dc.subjectcontractual saving institutions
dc.subjectcontractual savings
dc.subjectcontractual savings institutions
dc.subjectcorporate governance
dc.subjectcorporate pensions
dc.subjectdebt
dc.subjectdemand deposits
dc.subjectdepositors
dc.subjecteconometric evidence
dc.subjectequity markets
dc.subjectexpected return
dc.subjectfinancial \ assets
dc.subjectfinancial assets
dc.subjectfinancial crisis
dc.subjectfinancial deepening
dc.subjectfinancial innovation
dc.subjectfinancial institutions
dc.subjectfinancial intermediaries
dc.subjectfinancial markets
dc.subjectfinancial sector
dc.subjectfinancial services
dc.subjectfinancial structure
dc.subjectfunded schemes
dc.subjectGDP
dc.subjectgovernment bonds
dc.subjectgross domestic product
dc.subjectgrowth rate
dc.subjectimperfect substitutes
dc.subjectinsurance
dc.subjectinsurance companies
dc.subjectinterest rates
dc.subjectlife insurance
dc.subjectlife insurance companies
dc.subjectliquid assets
dc.subjectliquidity
dc.subjectmacroeconomic stability
dc.subjectmarket value
dc.subjectmoral hazard
dc.subjectmutual fund
dc.subjectmutual funds
dc.subjectnon-life insurance
dc.subjectpension fund portfolios
dc.subjectpension funds
dc.subjectpension schemes
dc.subjectpensions
dc.subjectportfolio
dc.subjectportfolio diversification
dc.subjectportfolios
dc.subjectpositive externalities
dc.subjectpresent value
dc.subjectpublic debt
dc.subjectreal interest rate
dc.subjectretirement
dc.subjectrisk taking
dc.subjectsavings
dc.subjectsavings ratio
dc.subjectsecondary markets
dc.subjectsecurities
dc.subjectstock markets
dc.subjecttransaction costs
dc.subjecttransparency
dc.subjectwealth
dc.subjectcontractual savings
dc.subjectstock markets
dc.subjectpension funds investments
dc.subjectlife insurance
dc.subjectcausality
dc.subjectcapital market growth
dc.subjecttradable securities
dc.subjectequity investments
dc.subjectbond options
dc.subjectindustrialized societies
dc.subjectdeveloping countries
dc.subjectstatistical data
dc.subjectfinancial development
dc.subjectinstitutional economics
dc.subjectmarket analysis
dc.subjectinsurance companies
dc.subjectmarket value
dc.titleContractual Savings or Stock Market Development—Which Leads?en
dspace.entity.typePublication
okr.crossref.titleContractual Savings or Stock Market Development Which Leads?
okr.date.disclosure2000-08-31
okr.date.doiregistration2025-04-10T10:53:41.378262Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.globalpracticeFinance and Markets
okr.guid536101468780967057
okr.identifier.doi10.1596/1813-9450-2421
okr.identifier.reportWPS2421
okr.language.supporteden
okr.region.countryChile
okr.region.countryMalaysia
okr.region.countrySingapore
okr.region.countrySouth Africa
okr.region.countryThailand
okr.sectorFinance
okr.topicConflict and Development::International Terrorism & Counterterrorism
okr.topicFinance and Financial Sector Development
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Contractual Savings
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicFinance and Financial Sector Development::Payment Systems & Infrastructure
okr.topicLaw and Development::Insurance Law
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.unitFinancial Sector Development Department
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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