The Pension Crisis concerns the changing demographic profile of the economy: an increasing number of elderly persons supported by fewer young people. Governments around the world are responding to this impending crisis by shifting their pension policies away from pay-as-you-go systems towards individual savings schemes. These savings need to be converted into a pension at retirement, and annuities provide this function. This book is a comprehensive study of annuity markets. The book starts by outlining the context of public policy towards pensions, and explains the different types of annuities available, focusing on the UK which has the largest annuity market in the world. It examines how annuities are priced, and describes the techniques of mortality measurement. As a background, it provides a history of annuities, and the experience of annuity markets in a number of other countries. The book outlines the economic theory behind annuities, and explains how annuities insure consumers against longevity risks. It goes on to describes how annuities markets function: how they work, and whether they are efficient, leading onto a discussion of the annuity puzzle. The book concludes by discussing the regulatory framework, assets available to back annuity liabilities, and recent developments in annuity markets.

Intangible assets are of growing importance to corporate competitiveness and economic performance. They include R&D, human capital, innovation in products and in organisation, trademarks and patents, networking and software. This path-breaking book provides a theoretical and empirical analysis of intangible investment and its effect on public policy in Europe. The authors find that the growing importance of intangibles is transforming the direction of public policies in Europe, particularly industrial, R&D, competition and trade policies. They conclude that government policies must recognise the fact that intangible investment is becoming the key element in bringing about durable growth and accord at least the same priority to intangible factors as to physical investment. This work should be essential reading for students interested in this new field of economic analysis, national and international policymakers, and industrialists involved in the non-physical economy.

How do we incorporate analytical thinking into public policy decisions? Stuart Shapiro confronts this issue in Analysis and Public Policy by looking at various types of analysis, and discussing how they are used in regulatory policy-making in the US. By looking at the successes and failures of incorporating cost-benefit analysis, risk assessment, and environmental impact assessment, he draws broader lessons on its use, focusing on the interactions between analysis and political factors, legal structures and bureaucratic organizations as possible areas for reform.Utilizing empirical and qualitative research, Shapiro analyzes four different forms of analysis: cost-benefit analysis, risk assessment, environmental impact assessment, and impact analysis. After interviewing nearly fifty individuals who have served in high levels of government, and who have made countless regulatory policy decisions in their careers, Shapiro argues that advocates must become less ambitious and should craft requirements for simpler and clearer analysis. Such analysis, particularly if informed by public participation, can do a great deal to improve government decisions. As this book details the relationship between analysis and institutional factors such as politics, bureaucracy, and law, it is appropriate for a variety of readers, such as scholars of policy, students, scholars of regulation, and congressional and state legislative staff looking to create new analytical requirements.

This book explores whether foreign direct investment (FDI) can contribute to the competitiveness of industries in Central Europe and to narrowing the gap between these transition economies and countries within the European Union. The Czech Republic, Hungary, Slovakia and Slovenia have attracted substantial FDI since the beginning of their transition to a market economy. Using exhaustive empirical data, the authors demonstrate that foreign investment enterprises in Central Europe have higher allocative efficiency, promote macro- and microeconomic restructuring and foster the restructuring of the manufacturing sector in accordance with the host countries' comparative advantages. The case of Austria is used to demonstrate the possible benefits of FDI. On the other hand, high foreign penetration leads to the concentration of production and exports and makes the economy more vulnerable to external shocks. In addition, there may be unwelcome pressures on economic policy in order to maintain the country's position as a frequented investment target. However, the analysis in this book suggests that, on the whole, economies in transition can become more competitive more rapidly and more profoundly with the help of foreign direct investment. This book will be of interest to students and scholars of international economics, European studies, economies of transition and international business.

Economics is an integral aspect to every successful society, yet basic financial practices have gone unchanged for decades. Analyzing unconventional finance methods can provide new ways to ensure personal financial futures on an individual level, as well as boosting international economies. Alternative Decision-Making Models for Financial Portfolio Management: Emerging Research and Opportunities is an essential reference source that discusses methods and techniques that make financial administration more efficient for professionals in economic fields. Featuring relevant topics such as mean-variance portfolio theory, decision tree analysis, risk protection strategies, and asset-liability management, this publication is ideal for academicians, students, economists, and researchers that would like to stay current on new and innovative methods to transform the financial realm.

Global Bank Regulation: Principles and Policies covers the global regulation of financial institutions. It integrates theories, history, and policy debates, thereby providing a strategic approach to understanding global policy principles and banking. The book features definitions of the policy principles of capital regularization, the main justifications for prudent regulation of banks, the characteristics of tools used regulate firms that operate across all time zones, and a discussion regarding the 2007-2009 financial crises and the generation of international standards of financial institution regulation. The first four chapters of the book offer justification for the strict regulation of banks and discuss the importance of financial safety. The next chapters describe in greater detail the main policy networks and standard setting bodies responsible for policy development. They also provide information about bank licensing requirements, leading jurisdictions, and bank ownership and affiliations. The last three chapters of the book present a thorough examination of bank capital regulation, which is one of the most important areas in international banking. The text aims to provide information to all economics students, as well as non-experts and experts interested in the history, policy development, and theory of international banking regulation.

Interest rate modeling and the pricing of related derivatives remain subjects of increasing importance in financial mathematics and risk management. This book provides an accessible introduction to these topics by a step-by-step presentation of concepts with a focus on explicit calculations. Each chapter is accompanied with exercises and their complete solutions, making the book suitable for advanced undergraduate and graduate level students.This second edition retains the main features of the first edition while incorporating a complete revision of the text as well as additional exercises with their solutions, and a new introductory chapter on credit risk. The stochastic interest rate models considered range from standard short rate to forward rate models, with a treatment of the pricing of related derivatives such as caps and swaptions under forward measures. Some more advanced topics including the BGM model and an approach to its calibration are also covered.

Richard Musgrave is one of the most eminent public finance economists of our time. In this third volume of essays, Professor Musgrave once more takes a broad view of fiscal institutions, their nature and functions. Traditions of fiscal theory and their impact on the author's work are discussed and their linkage to theories of the state and of distributive justice are examined. Selected topics include: the foundations of public finance, equity in taxation, tax reform, federalism and budget growth. Public Finance in a Democratic Society will be of interest to scholars and students of public finance, political economy and public policy.

This highly topical book focuses on a particularly interesting area of post-1989 social policy. Existing public pension systems in Central-Eastern Europe underwent fundamental change as Latin-American style pension reforms were adopted. Such radical change in retirement provision defied conventional wisdom among scholars of the political economy of pension reform, suggesting a need for fresh research. This unique study accepts the challenge, focusing on the divergent pension reform experiences of Poland, Hungary and the Czech Republic. This study was granted the EACES Award 2000, a bi-annual prize awarded in the area of comparative economic systems and economics of transition. It has also been awarded the Ed. A. Hewett Prize by the AAASS (American Association for the Advancement of Slavic Studies).

This study explores the international aspects of pension reform, private savings and volatile capital markets and clarifies how they relate to one another. It builds the case for the pension-improving benefits of global asset diversification, and analyses the implications of financial reform.

In most capital markets, insider trading is the most common violation of securities law. It is also the most well known, inspiring countless movie plots and attracting scholars with a broad range of backgrounds and interests, from pure legal doctrine to empirical analysis to complex economic theory. This volume brings together original cutting-edge research in these and other areas written by leading experts in insider trading law and economics. The Handbook begins with a section devoted to legal issues surrounding the US's ban on insider trading, which is one of the oldest and most energetically enforced in the world. Using this section as a foundation, contributors go on to discuss several specific court cases as well as important developments in empirical research on the subject. The Handbook concludes with a section devoted to international perspectives, providing insight into insider trading laws in China, Japan, Australia, New Zealand, the United Kingdom and the European Union. This timely and comprehensive volume will appeal to students and professors of law and economics, as well as scholars, researchers and practitioners with an interest in insider trading. Contributors: K. Alexander, S.M. Bainbridge, L.N. Beny, S.F. Diamond, J. Fisch, J.M. Heminway, M.T. Henderson, N.C. Howson, H. Huang, K. Kendall, S.H. Kim, T.A. Lambert, K. Langenbucher, D.C. Langevoort, H.G. Manne, M. Nelemans, A. Padilla, A.C. Pritchard, J.M. Ramseyer, M.C. Schouten, H.N. Seyhun, A.F. Simpson, J.W. Verret, G. Walker

Indirect taxes have become an increasingly important revenue-raising tool for governments in developed countries. In this book, John Creedy applies his wealth of experience and expertise to the analysis of indirect taxes and, in particular, concentrates on the modelling of indirect tax reform and its distributional implications.Initially, he examines the implications of alternative indirect tax systems and provides an introductory survey of various measures of welfare change and excess burden in the context of indirect taxes. He pays particular attention to the measurement issues involved and uses partial equilibrium models to uncover various aspects of tax reform. Specifically, he: addresses the questions of measuring welfare changes arising from price changes examines the built-in flexibility of various forms of consumption taxation calculates the possible redistributive effects of indirect taxes and illustrates his methods using case study examples of the indirect tax system in Australia examines the horizontal inequity of different consumption taxes considers the optimal direction of small changes in indirect tax rates analyses the positive and negative effects of a carbon tax Modelling Indirect Taxes and Tax Reform will be useful to scholars and policymakers interested in public economics and finance and modelling taxes.

A compelling argument for placing entrepreneurship at the heart of economic development provides a guidebook for how this can be done efficiently, effectively, and equitably. Investing in Entrepreneurs: A Strategic Approach for Strengthening Your Regional and Community Economy offers a compelling argument for making the support of entrepreneurship the centerpiece of local and regional economic development—and provides a plan to make it happen. The book is organized around a tool, developed by the authors, that permits a community to strategically map and manage its business assets in a way that can transform its economy. Investing in Entrepreneurs begins with a reflection on the importance of entrepreneurship, a discussion of its diminished place in economic development, and a call for its rise back to prominence. The importance of managing entrepreneurial assets is discussed, followed by a thorough articulation of the author's tool for accomplishing this in a holistic and strategic manner. Examples drawn from the authors' fieldwork illustrate the many ways in which the tool can be utilized to guide economic development efforts. A final chapter discusses possible resistance to this innovation and how that resistance can be successfully addressed.

Flying into the Future explores the organization of air transport in the European Union. It analyses the nature of the industries supplying air transport services, the institutional structure of air transport services, and impediments to increased efficiency in the provision of air transport. The reduction in institutional barriers and regulations has led to a more efficient provision of air transport services in the EU. This book assesses the improvements in the efficiency of air transport services, and highlights institutional and physical problems impeding further efficiency gains. The authors examine airline operations, and the ability of two or more transport systems to operate effectively in tandem. They also consider how to make the boundaries between different transport networks invisible, as well as discussing issues of national organization and the juridical structures which impede operations. The analysis examines both the internal European Union market for air transport services and the links between it and the rest of the world. Other key issues discussed include: * EU air transport developments in the context of global markets * comparisons of recent developments in aviation policy between the EU and the United States * the problems of congestion in the air transport industry in Europe * the growth and significance of airline alliances. The authors not only consider the economics of European air transport but also legal, political, technical and geographical issues. They explore the problems of providing air transport in the context of inadequate information, institutional constraints, inherent market imperfections and imprecise objectives. Flying into the Future will be essential reading for industrialists, policymakers and academics interested in transport economics and transport policy.

This important and timely book examines the impact of different financial systems on investment. It considers the increasing effects of globalization on the relationship between national financial systems and investment, which is especially relevant in light of the recent Asian crisis. Marc Schaberg explores the way in which countries finance investment and the institutional arrangements which are in place for channelling finance to investment projects. He specifically examines the patterns of sources and uses of funds in non-financial enterprise sectors in the US, UK, France, Japan and Germany. Using time series data and econometric tests, he measures and categorises the financial systems of these countries. He also assesses the empirical evidence to question the commonly held assumption that financial systems are converging. Globalization and the Erosion of National Financial Systems will be welcomed by students and scholars working in the areas of money and banking as well as by financial economists.

Environmental taxes are considered one of the most attractive environmental policy instruments. However, many problems still prevent their widespread implementation. This impressive book offers a comprehensive, global and innovative treatment of the environmental tax issue. The author provides detailed economic analysis as well as practical policy suggestions and presenting numerous examples that have been successful in addressing complex issues as well as considering questions including: how should the instrument be designed? what to do with the tax revenues? how taxes could be made acceptable for industry, politicians and voters an analysis of the ethical issues of environmental taxation. This comprehensive treatment of environmental taxes will ensure the book's appeal to researchers, academics and students. It will also be of immense value to those working with the environment, as well as providing practical solutions to implementation problems faced by civil servants in central and local government.

Over the past couple of decades, differentials in the level of private contributions to charitable organizations have become a central matter of public policy. Because private charitable contributions finance many socially valuable activities (for example, education and the arts), many governments have tried to boost private philanthropy through various active policy interventions. Furthermore, the temptation to rely on private contributions to finance the provision of public goods has increased substantially in recent years as fiscal constraints have become tighter. Yet there is little robust quantitative evidence regarding the differentials in private charitable giving across countries, and more importantly very little consensus on why these differentials may exist. This volume provides an original, comparative, and historical analysis of charitable giving and of tax policies towards private philanthropy across different countries. It sheds new light on the determinants of private philanthropy and offers interesting practical insights for improving tax policies towards charitable giving.

Why do so many smart professional people make bad investments? Why do they often fail to accumulate significant wealth and sometimes make truly disastrous financial decisions? This book offers some answers to these questions. It then provides specific recommendations to help doctors, lawyers, scientists, teachers, and many other intelligent people avoid serious financial errors and achieve superior investment results. Sensible self-directed investing with long-term compounding of returns and avoidance of all unnecessary fees can produce remarkable accumulations of capital with limited risk. You can choose to be successful as a largely passive investor or as one more seriously involved in making individual investment decisions. This book tells you how to do it. Buying this short volume and then putting its advice into practice may become the most important financial decisions you have ever made. About the author - Joseph D. Schulman is an internationally known physician, medical research scientist, and biomedical entrepreneur. He is also a successful investor. Dr. Schulman is a graduate of Harvard Medical School and of the Executive M.B.A. (OPM) program at Harvard Business School. He lives with his wife, Dixie, in Oxford, MD and Palm Springs, CA.