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Fund management and its effect in the Greek social security system

Published online by Cambridge University Press:  16 November 2007

NIKOLAOS T. MILONAS ,
GEORGE A. PAPACHRISTOU  and
THEODORE A. ROUPAS
NIKOLAOS T. MILONAS*
Affiliation:
Department of Economics, University of Athens, 5 Stadiou Street, 105 62 Athens, Greece (e-mail: [email protected])
GEORGE A. PAPACHRISTOU
Affiliation:
Department of Economics, Aristotle University of Thessaloniki, 540 06 Thessaloniki, Greece (e-mail: [email protected])
THEODORE A. ROUPAS
Affiliation:
Adjunct Assistant Professor, Technological Educational Institute of Chalkida (e-mail: [email protected])
*
*Corresponding author.
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Abstract

Economic and demographic slowdown has put under strain public pension systems around the globe. In this paper, we discuss the characteristics of the Greek social security system and investigate the issue of pension fund management. Our empirical analysis focuses on whether flexible investment rules (including equity investment) could have taken the pressure off the Greek public pension system while reducing the risks associated with such flexibility. The empirical results of the paper suggest that efficient management of reserves can result in additional significant revenues at acceptable levels of financial risk. However, pension fund management flexibility cannot by itself resolve the problem of social security system.

Type
Articles
Information
Journal of Pension Economics & Finance , Volume 8 , Issue 4 , October 2009 , pp. 485 - 500
Copyright
Copyright © 2007 Cambridge University Press

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