Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/20108
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Funding pensions in Scotland: would independence matter?
Authors: Bell, David
Comerford, David
Eiser, David
Contact Email: david.eiser@stir.ac.uk
Keywords: pensions
bonds
independence
risk pooling
mortality
yields
Issue Date: Feb-2014
Publisher: SAGE
Citation: Bell D, Comerford D & Eiser D (2014) Funding pensions in Scotland: would independence matter?, National Institute Economic Review, 227 (1), pp. R21-R31.
Abstract: Economic issues will be key determinants of the outcome of the Scottish referendum on independence. Pensions are a key element of the economic case for or against independence. The costs of funding pensions in an independent Scotland would be influenced by mortality risks, the costs of borrowing and the segmentation of costs and risks (i.e. pricing to Scotland’s experience rather than pooled across UK experience). We compare the overall costs of providing pensions in an independent Scotland against the resources that are available to cover these costs. Scotland has worse mortality experience than the UK as a whole, and Scottish government debt is likely to attract a liquidity premium relative to UK government debt. An independent Scottish government would have to create a bond market for public debt. The liquidity premium would make pensions cheaper to buy, but taxpayers or the consumers of public services would have to pay the cost.
Type: Journal Article
URI: http://hdl.handle.net/1893/20108
DOI Link: http://dx.doi.org/10.1177/002795011422700104
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: Economics
Economics
Economics

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