Contemporary Issues in Social Science

Simon Grima, Ercan Özen, Hakan Boz, Simon Grima, Ercan Özen, Hakan Boz, Ercan Ozen

• Publisher: Emerald Publishing Limited
• Year: 2021
• Print ISBN: 9781800439313
• eBook ISBN: 9781800439320
• Topic: Personal Development
• Subtopic: Financial Accounting

This special edition of Contemporary Studies in Economic and Financial Analysis offers twenty-three chapters by invited participants in the International Applied Social Science Congress. In these chapters chronical a wide variety of important issues such as: Volatility spillover between conventional stock index and participation index; The Interplay Between Experience, Satisfaction and Positive Word of Mouth: A Study on City Marketing in Afyonkarahisar and more.

This international and wide-ranging exploration on different economic systems provides a comprehensive account which brings a wide range of countries to the forefront in terms of both comparability and accountability, this study shines a light on the differences in systems between states, and provides timely and accurate information to equip readers to minimize those differences.

CHAPTER 1

THE MEASUREMENT OF THE DEGREE OF GOVERNMENT REGULATION IN THE PENSION SYSTEM

Rasmiyya Sabir Gizi Abdullayeva

ABSTRACT

Introduction: The liberalization tendency in the economic system of most countries in the world exists in the last years. Our last research proves that in most cases liberalism gives a positive effect on social-economic development (including pension system). However, constructive potential of economic liberalism is not everlasting, it means, first at some stages there is a certain end for the liberalization of the economy. Secondly, after a certain level (before the last level) liberalism may bring out an imminent shortage (the market sinister) in the free market in a destructive way.

That is why one of the essential (and very difficult) duties of economic science is to define effective ranges of liberalism (accordingly, government regulation) for each certain country during a specific time frame. One of the differences of the pension system from other social protected chains is that this system is capable to liberalize. Is it possible to measure the degree of the government regulation of the pension system?

Unfortunately, this chapter has revealed that there is no such methodology. The author has created a methodology for the first time that allows to measure the degree of government regulation in the pension system. This methodology is called the Index of Liberalism (Dirigisme) of Pension System (IL(D)PS). By calculating IL(D)PS, the author finds out that the regulation degree (interval) of the pension system. Measurement of the degree of government regulation in the pension system allows evaluating the social consequences of the implemented reforms.

IL(D)PS has been calculated on the basis of four indicators: (i) ratio of the private pension assets (%GDP); (ii) ratio of the public pension expenditures (%GDP); (iii) social security tax rates for employers; and (iv) restrictions for investment of the pension funds.

At the initial stage IL(D)PS has been calculated for 31 countries. Among 31 countries, there are developed, emerging, post-socialist countries and countries known for their revolutionary reforms in the pension system.

According to IL(D)PS, the most dirigiste (leftness) countries are France (0.868), Greece (0.732), Italy (730) and Azerbaijan (0.704). According to the IL(D)PS, the most liberal (rightness) countries are Australia (0.208), Denmark (0.223), the Netherlands (0.231) and Canada (0.237).

In Azerbaijan, pension provision is under governmental monopoly (extreme dirigiste system). The private pension system in Azerbaijan has not been formed yet. Azerbaijan has a certain degree of liberalization of the pension system.

Aim: The author wants to measure the degree of the government regulation in the pension system.

Method: The author have performed correlation, analytical-statistical and cross-country analyze.

Findings: The degree of the government regulation in the pension system has been measured in 31 countries.

Keywords: Government; regulation; liberalism; dirigisme; pension systems; Monopoly

JEL classifications: H53; H55; K20

STATEMENT OF THE PROBLEM

International experience proves the liberalization of the pension system in many cases has positive results.

According to research, if a person with pension insurance in 1970 had invested the same payment in private funds instead of social security insurance, he would have received six times more than today’s pension. (SSK, 1995)

However, “the fact that politicians perceive social security as a convenient source of funding and ignore to give up this source complicates the functioning of the present system” (Jeffrey, 1995).

However, this constructive potential of economic liberalization, of course, is not infinite. That is, first, there is a certain limit to the liberalization of the economy, including the pension system. And secondly, after a certain level (even bef...

Table of contents

• Cover
• Title
• Chapter 1. The Measurement of the Degree of Government Regulation in the Pension System
• Chapter 2. Effects of Perceived Stakeholder Conflict Factors on Guests’ Outcomes: Evidence from Kyrenian Hotels in North Cyprus
• Chapter 3. Determining the Relationship between Job Satisfaction, Dependence on Tips and Turnover Intentions: The Case of Hotel Employees
• Chapter 4. Comparative Efficiency Analysis of Tourism Industry in the Southern Mediterranean Region
• Chapter 5. Circular Economy from the Point of Consumption Relations: Consumer’s Role in Maintaining Circular Process
• Chapter 6. Dependency on Foreign Labor in the Information and Communication Technology Sector of the Maltese Economy
• Chapter 7. Do Investors Overreact to Firm Merger and Acquisition Decisions?
• Chapter 8. Quiet Tourism: Opportunities and Challenges
• Chapter 9. The Influence of COVID-19 on Consumers’ Perceptions of Uncertainty and Risk
• Chapter 10. Economic Activity and Urban Design Policy as a Means for Recovery of Commercial Activity: The Case Study of Athens’ Commercial Streets
• Chapter 11. The Relationship Between Credit Default Swap and Macroeconomic Indicators: An Example from Turkey
• Chapter 12. How Are Immigrants Advancing on the European Labor Market? The Case of Spain
• Chapter 13. Financial Development and House Prices in Turkey
• CHAPTER 14. COVID-19 PANDEMIC: REFLECTIONS ON ORGANIZATIONAL LIFE AND EMPLOYEE PSYCHOLOGY
• Chapter 15. The Importance of Thorough Financial Reporting During COVID-19 Pandemic: Empirical Evidence From Borsa Istanbul
• Chapter 16. Financial Literacy Influencing Factors Analysis: Estonia, Latvia, and Lithuania Case
• Chapter 17. Agricultural Biomass Production: Implications for Economic Growth and Environment in Central and Eastern European Countries
• Chapter 18. Methods for Predicting the Future Evolution of GHG Emissions by Domains
• Chapter 19. The Impact of Good Governance on Entrepreneurship in Terms of Sustainable Development
• Chapter 20. The stage of non-financial reporting in Romania
• Chapter 21. Valuable Insights into Consumer Values: The Case of Latvian Social Enterprises
• Chapter 22. Digital Inequalities in Households In Latvia: Problems and Challenges
• Chapter 23. Individual Risk Perceptions and Behavior
• Index