ATP-pension fund’s investments and consumption in Sweden 1961–1994. Past example, but problem still not resolved
ATP-pension fund’s investments and consumption in Sweden 1961–1994. Past example, but problem still not resolved

Summary/Abstract: Sweden at the beginning of the 1990s was overtaken by the financial and housing market crisis. Economists claim that Swedish example is similar to the 2008 global financial crisis. It is also postulated that aberrant consumption pattern was observed in Sweden in the late 1980’s. In this research I investigate the impact of the ATP-pension funds investment on the consumption in Sweden over the period since its creation to the Swedish financial crisis (1961–1994). The analysis is divided in two steps: in the first one pure consumption model is augmented by the ATP pension funds investment. ATP investments are assigned to three groups: Swedish Company Shares, Government Bonds and Housing Market Securities. The second goal is to find the true determinants of the consumption. Using Bayesian inference I show that pension funds investment in the housing market assets spurs excess consumption, so decrease net savings.

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