Analyses of pension funding effects on economic growth need to differentiate between "carve-out" pension privatization in Latin America and Eastern Europe and typical "add-on" pension funding in Western Europe and North America. We find no evidence that pension privatization in Latin America and...

Analyses of pension funding effects on economic growth need to differentiate between ‘carve-out' pension privatization in Latin America and Eastern Europe and typical ‘add-on' pension funding in Western Europe and North America. We find no evidence that pension privatization in Latin America...

During first 15 years of their existence, mandatory private pension funds in Eastern Europe have realized rates of return that were lower and more volatile than the corresponding Pay-As-You-Go rates of return, even before the emergence of global financial crisis. Suboptimal investments in...

In order for ‘carve-out' pension privatization to improve long-term sustainability the transition should not be predominantly debt-financed, and private pension funds should deliver (net) rates of return tangibly higher than GDP growth. We show that none of the reforming countries in Eastern...