Findings in Economic Modelling Reported from Seoul National University (Social Insurance for the Elderly)

Insurance Daily News

2020 SEP 07 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators discuss new findings in Economics - Economic Modelling. According to news reporting out of Seoul, South Korea, by NewsRx editors, research stated, “We study the effects of retirement benefits provided by social insurance programs on consumption, portfolio choice, and retirement in a continuous-time theoretical model. We show that people tend to retire earlier with an increase in retirement social insurance benefits (SIBs), consistent with empirical evidence.”

Financial supporters for this research include National Research Foundation of Korea (NRF) - Korea government, NRF, NRF Global Ph.D. Fellowship.

Our news journalists obtained a quote from the research from Seoul National University, “We show also that people tend to increase savings before retirement in anticipation of increased retirement benefits, a counter-intuitive result. The response of risky investment with an increase in the SIBs is ambiguous, depending on parameter values. The overall social welfare will increase with an increase in SIBs if the balanced budget constraint is satisfied.”

According to the news editors, the research concluded: “We also investigate the effects of changes in the two streams of the SIBs (paid in perishable goods and cash) and the proportion of workers in entire population on social welfare.”

For more information on this research see: Social Insurance for the Elderly. Economic Modelling, 2020;91():274-299. Economic Modelling can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Economic Modelling - http://www.journals.elsevier.com/economic-modelling/)

Our news journalists report that additional information may be obtained by contacting Kyunghyun Park, Seoul National University, Dept. of Mathematical Sciences, Seoul 08826, South Korea. Additional authors for this research include Se Yung Bae, Hyeng Keun Koo and Junkee Jeon.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.econmod.2020.05.021. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.