Contractual Savings , Stock and Asset Markets

  title={Contractual Savings , Stock and Asset Markets},
  author={Gregorio Impavido and Alberto R. Musalem},
  • Gregorio Impavido, Alberto R. Musalem
  • Published 2000
This paper analyzes the relationship between the development of contractual savings (pension funds and life insurance) and stock and asset markets. We sketch a three-asset model explaining how the contractual savings sector promotes financial development and what is the impact on asset markets equilibrium. We use panel data for some OECD and developing countries to test the validity of our propositions. We find that institutional investors such as contractual savings institutions and non-life… CONTINUE READING