Macroscopic Level Research On Pension Insurance Basic On GDP Expenditure Approach

The principle of appropriate development should always be adhered to in designand development of the pension system. Appropriate development means the system has anappropriate structure and moderate level. Moderate level refers to designing pattern of oldage insurance, pattern of payment and level of payment according to the reality of socialdevelopment, the bearing capacity of nation, companies and individuals. Basic on thedevelopment principal of moderate level, this paper focuses on the relationship betweenthe pension level and economic development. Meanwhile, the effects between economicelements of pension level are considered too.Pension levels can be measured from different angles. The proportion of pensionexpenditure to GDP is macro-level of old insurance, which can reflect the relationshipbetween the level of pension and economic development. What’s more, the economicdevelopment of the nation or areas could be reflected too. Therefore, the index is usuallyused internationally in comparison of the pension level. Since the establishment of shorttime, the three-pillar pension system of our country is imperfect and needs improving.Therefore, basic pension insurance almost bears all the pension duties and the paper isfocused on macro-level of basic pension insurance. This paper mainly includes thefollowing three aspects:(1) Preparation of the research. Summary of pension insurance models,measurement of pension level and researches on influencing factor of pension macro-levelwill be presented. International comparison of pension insurance structure, retirementincome structure, pension replacement ratio and macro-level of pension will also beincluded. Additionally, summary of three methods of GDP accounting and two methods ofcomparison will also be shown in the paper.The paper will select GDP expenditure approach and PPP using in International economic comparison.(2) Sample selection and construction of index system. This paper will classifysample countries then make selection. Indexes that affect macro-level of pension will beselected and method of grey correlation analysis will be used in the process. Comparisonof macro-level of pension between and within three kinds of countries will be conducted.The paper will select indexes of consumption, investment and net exports and reclassifythem on the basis of their common characteristics, which will be used as index system ofmacro-level of basic pension insurance and SEM construction.(3) Construction of basic pension macro-level SEM and analysis of structuralrelationships. Structural equation model of basic pension macro-level is consisted by fivepotential variables: pension macro-level, demands of pension, changing of economy, finalconsumption, savings and their observed variables. Structural relationships among fivepotential variables could be concluded by the analysis of equation. Then the paper willconduct analysis to the structural relationships of SEM. Finally comparing the researchconclusion with reality in our country and some relevant countermeasures and suggestionswill be put forward: reducing the excessively high savings rate, adjusting the pensionableage and developing occupational pension.Two innovations are shown by this paper. The first is innovation of researchangle. The paper does some researches on the relationship between GDP structure andmacro-level of basic pension insurance from respective of structure of GDP expenditureapproach basic on international comparisons. The second innovation is research method.SEM is used in the analysis of macro-level of basic pension insurance.