Research Article
Effects of an Eventual Upcoming Withdrawal of Pension Funds
Hernán Bustos Martínez*
Issue:
Volume 13, Issue 3, September 2024
Pages:
71-75
Received:
18 March 2024
Accepted:
1 April 2024
Published:
6 August 2024
Abstract: The three withdrawals from pension funds injected almost US$ 50.000 billion into the market bringing with them inflationary pressures in the short and medium term, a decision that was harmful to people and companies. On the economic side, more than half of domestic inflation is due to the three withdrawals, decreasing the value of people´s money and increase the interest rates. On the pension side, eleven million people managed to withdraw their money and almost four million people were left without their funds. For women a drop of 33% in the amount of the future pension and for men a 24% on average. And on the financial side, a destruction of the capital market causing a significant drop in assets prices and companies to stop investing in big projects in Chile. During 2023, a new project was carried out on a new withdrawal of pension funds but it the form of a self-loan, a benefit that would have between one million and ten million Chilean pesos saved in their accounts to withdraw up to one million Chilean pesos. The purpose of this work is to see the effects of a possible fourth withdrawal from pension funds. And we conclude that an upcoming retirement has three consequences. In the economic sense, it would bring with another increase in the monetary base, which in turn translates into an increase in inflation. In the sense of pensions, more than three million people would again run out of funds and would cause a potential additional 16% drop in the amounts of future pension affecting the current saving of contributors. Finally, in the financial sense, the capital markets would be destroyed, causing a significant drop in assets prices and companies to stop investing in big projects in Chile.
Abstract: The three withdrawals from pension funds injected almost US$ 50.000 billion into the market bringing with them inflationary pressures in the short and medium term, a decision that was harmful to people and companies. On the economic side, more than half of domestic inflation is due to the three withdrawals, decreasing the value of people´s money an...
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Research Article
Assessing Market Participation of Smallholder Cassava Farmers in Sekyere Central District of Ghana Using Vector Generalized Additive Ordered Models
Isaac Abunyuwah*
Issue:
Volume 13, Issue 3, September 2024
Pages:
76-87
Received:
2 July 2024
Accepted:
24 July 2024
Published:
6 August 2024
Abstract: Smallholder farmers theoretically produce and market their output to meet livelihood needs of the family under given set of resource constraints. In spite of numerous policy efforts to ensure that smallholder farmers in Ghana and rural districts in particular, exploit the economic potential of cassava production, many of them continue to produce for subsistence with limited participation in the markets. To assess and explain the levels at which smallholder cassava farmers participate in markets, the study applied the partial proportional odds model in the framework of Vector Generalized Additive model (VGAM), which comprehensively addresses conceptual, modelling and interpretational complexities implied by market participation (MP) theory. Data for the study were collected from 365 cassava farmers in Sekyere Central (SC) district of Ashanti region, Ghana. The results showed that only 32% of the farmers participated in the markets as Net sellers, while 45% and 23% participated as Autarkic producers and Net buyers respectively. The econometrics analysis revealed that household size, access to market information, age, education, market access, membership to famer or community organisation, off-farm income, farm income, livestock holdings, cassava output and cassava being cultivated as major crop, appeared statistically significant in explaining MP decisions. Five variables, namely income, livestock, produce, access to market information and cassava as major produce, failed the proportional odds assumption and entered the model unconstrained, producing regime specific estimates. These results are indicative of how conditional, on a given regime, farmers respond to changes in the factors that affect their MP decisions, in terms of intensity and direction. Farm level policies, that target cassava farm households’ participation in markets should consider regime specific strategies.
Abstract: Smallholder farmers theoretically produce and market their output to meet livelihood needs of the family under given set of resource constraints. In spite of numerous policy efforts to ensure that smallholder farmers in Ghana and rural districts in particular, exploit the economic potential of cassava production, many of them continue to produce fo...
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