Master • Economics and Finance of Aging - Tilburg University, The ...

Faculty of Economics and Business Administration2007/2008Master• Economics and Financeof AgingUVT-3-11.indd 1 16-04-2007 15:25:07

ContentsIntroduction3 Introduction4 Tilburg UniversityFaculty of Economics and Business AdministrationNetspar7 Economics and Finance of AgeingAt a GlanceCharacteristicsProgrammeCareer OpportunitiesAdmission Requirements13 Tuition Fee13 Application Procedures14 More InformationDid you know that recent research has predicted that in Europe alone,nearly 35% of the population will be aged 60 and over by the year 2050?The issue of our ageing population and the implications on economicissues and policy questions is studied in the Master’s programmeEconomics and Finance of Aging, which started in September 2006.In this brochure, you will find a detailed description of this uniqueMSc programme in Economics and Finance of Aging, offered bythe Faculty of Economics and Business Administration (FEB) of TilburgUniversity. This brochure aims to set out what you need to know tomake an informed decision about your graduate studies. To give you amore personal account of what our graduate programme in Economicsand Finance of Aging is all about, we have also included introductionsby some of our professors.Separate brochures of the other master’s programmes of the Facultyof Economics and Business Administration are also available.For international students there is an additional brochure aboutapplication procedures and the services of the International AffairsOffice. For additional copies of this or other brochures, please send an e-mail to study-info@uvt.nl.We are looking forward to receiving your application for the nextacademic year and welcoming you to Tilburg University.This brochure was prepared with great care. However, TilburgUniversity reserves the right to change without notice anyprogrammes, policies, requirements or regulations publishedin this brochure.3 Faculty of Economics and Business AdministrationUVT-3-11.indd 2-3 16-04-2007 15:25:15

Tilburg UniversityFaculty of Economics and Business AdministrationTilburg University is an internationally oriented, fully accredited, topuniversity in the Netherlands. It is well known for its high standards ineducation and scientifi c research as well as its excellent support facilities.In yearly rankings, Tilburg University has taken a leading position formany years now.Since 1927, Tilburg University has expanded its horizons and has growninto a university with six faculties and an Executive Business School(TIAS, Executive MBA). Specialised in the Social Sciences and theHumanities, Tilburg University belongs to Europe’s top in business,economics and law. Its 1,700 staff members provide liberal educationfor 11,000 students in the disciplines of Arts, Economics and BusinessAdministration, Law, Philosophy, Social and Behavioural Sciences,and Theology.The Faculty of Economics and Business Administration is TilburgUniversity’s largest Faculty and the most prestigious one in theNetherlands. The Faculty enjoys high rankings for its excellent qualityin education and research, for example, it is the current number oneeconomics research institute in Europe and the number three businessresearch institute. With about 500 staff members, the Faculty ofEconomics and Business Administration offers 32 undergraduate andgraduate programmes in the fields of Economics and Business toapproximately 5000 students. Education and research are provided bythe Faculty’s departments: Accountancy, Econometrics and OperationsResearch, Economics, Finance, Fiscal Economics, Information Systemsand Management, Marketing, and Organization and Strategy.The master’s programme in Economics and Finance of Aging isbased on the scientifi c research of Netspar, the Network for Studieson Pensions, Aging and Retirement.All study programmes have achieved accreditation by the Dutch FlemishValidation Council (NVAO). The research programmes offered byCentER Graduate School (part of the Faculty of Economics and BusinessAdministration) have also been accredited by the Royal NetherlandsAcademy of Arts and Sciences. Additionally, the business programmeshave achieved accreditation by AACSB International. All representhallmarks of excellence that make it possible for Tilburg University tocompete not only with European Universities, but also with some ofthe best Universities in the world.Tilburg University invites you to take part in a challenging student life ina truly international setting. The university has 180 partner universitieson all fi ve continents. You can enjoy interactive teaching in small groups,including case studies and teamwork. You will have access to all campusfacilities such as wireless internet, a high-tech library, a languagecentre and internet cafes. The compact campus set-up offers you theopportunity to meet professors, researchers, lecturers and students ofdifferent backgrounds and nationalities.Degree ProgrammesUndergraduate Programmes Graduate Programmes8 BSc Programmes 17 MSc Programmes2 MPhil Programmes2 Post-graduate Programmes3 PhD ProgrammesRankingsThe Faculty of Economics and Business Administration is consistentlyranked in the top best universities in Europe.Some of the most recent rankings:- Number one in Economics research in Europe (Journal of theEuropean Economic Association, 2003)- Number three in Economics research in Europe(www.econphd.net 2006)- Number three in Business research in Europe (University of Texasat Dallas, 2005)Faculty of Economics and Business Administration 45 Faculty of Economics and Business AdministrationUVT-3-11.indd 4-5 16-04-2007 15:25:28

NetsparInterviewNetspar is a network for research and education in the field of pensions,aging and retirement. It is an independent network composed ofacademics and practitioners in the field, supported by universitiesas well as private and public institutions with an interest in Netspar’sresearch topics. The initiative to establish Netspar was taken by theFaculty of Economics and Business Administration and the Facultyof Social and Behavioural Sciences of Tilburg University.Netspar formulates and executes three independent and internationallyoriented scientific research programmes on pensions, aging andsocial insurance in a broad life-cycle context:• Macroeconomic aspects of ageing and retirement• Decisions of individuals and households concerning savings,retirement and insurance• Institutional aspects and behaviour of pension funds and financialinstitutionsNetspar provides critical mass to these programmes by bringingtogether academic researchers from different fields, disciplines,backgrounds and institutions.More information about Netspar is available atwww.netspar.nlFaculty of Economics and Business Administration 6Prof.Dr. Lans BovenbergAcademic Director of Netspar, Winner Spinoza prize (the ‘Dutch Nobelprize’) in 2004. He is one of the most-cited national and internationalDutch economistsFind a new way of dealing with the aging problem“One of my research interests is risk sharing in the society. For youngpeople absorbing risk is not so diffi cult, but it is more diffi cult for oldpeople who do not like risks. With the increasing number of old people,risk sharing is becoming more expensive and challenging. We have tofi nd a new way of dealing with the aging problem, fi nd the people whocan best bear the risk. Taking risks is good for economic growth andinnovation, as well as entrepreneurship, but how to allocate the riskmore effi ciently through pension systems, that is the question. Anotherinterest, also close to this master’s programme, is the difference in lifecycle of young people and the previous generation. More women work,people obtain better education, the average age becomes higher, etc.This creates many new issues. Additionally, the government’s socialsecurity expenses are contained in several western countries, as peopletake more responsibility for their own lives.This programme involves its student’s future employers, such as pensionfunds, insurers and government agencies. It will be a combination ofworking and learning, and students will learn to use different perspectiveslike Finance, Economics and Econometrics, to analyse a single problem.Aging and Pension may sound less interesting to young people, but ifyou look at the news nowadays, you will fi nd they are dominant subjects.And as for the future, the importance will increase further as society ages.It is challenging and exciting to create the potential value for both businessand society. We are looking for well-rounded students who want to get thevery best out of themselves. They should have keen interests in differentcountries, as aging is a global issue. They should also be able to putvarious instruments and perspectives together, such as commercialfi rms, non-profi t organisations, and the government.”Economics and Financeof AgingUVT-3-11.indd 6-7 16-04-2007 15:25:42

Economics and Finance of AgingCaseAt a GlanceNameEconomics and Finance of AgingDuration1-year master’s programmeTypefull-timeTitleMaster of ScienceEducationOn-campus only (no distance learning),lectures and workshopsLanguage of Instruction EnglishExamswritten exams, papers, assignmentsBest Preparatory Bachelor’s Economics, Econometrics and OperationsResearch, Business, Actuarial SciencesCore CoursesIntro. Economics and Finance of Aging,Microeconomics of Life Cycle Behaviour,Microeconomics of Pensions and SocialInsurance, Empirical Research in Pensionand Retirement Economics,Investment Analysis of Aging and Pensions ICareer Opportunities Insurance companies, pension funds,ministries and other private and publicsector institutionsStartSeptemberInformation Day 23 November 2006 and 22 February 2007More Information www.tilburguniversity.nl/mastersCharacteristicsThe issue of life expectancy has major economic implications – not onlyon an individual level, but also on a global scale. How do we maintain asustainable pension system? How do pensioners spend their money andhow do they make financial decisions? What is the impact of ageing oneconomics and finance in general? In this programme you are examiningthe various topics from a multidisciplinary perspective. So besides theeconomic factors, you will also be taking into consideration health issuesand the psychological aspects of this worldwide problem of having apopulation that is ageing at a fast rate.The MSc in Economics and Finance of Ageing offers you the opportunityto communicate and cooperate on coursework, assignments, etc. withemployees from Netspar participants who will also take part in someof the courses. This means that the programme is strongly embeddedin Netspar, the Network for Studies on Pensions, Aging and Retirement.Netspar’s main concern is increasing the awareness of practitionersat financial institutes about the macroeconomic and microeconomicimplications of ageing and the policies of their institutions.Is this the right programme for me?Lectures will be given to relatively small groups of students,creating opportunities for interaction between the lecturer andstudents. Students will be challenged to actively participate in thelectures, will get assignments and will be asked to come up withtheir own suggestions to apply theory to real problems.The world’s first MSc in the field of aging,pensions and retirementThe Pension ChallengeThe affordability of old age provisions is coming under pressurebecause The Netherlands, like other EU countries, has to contend withthe consequences of an aging population. (…) This is the challenge thegovernment, pension funds and the central organisations of employersand employees, the so-called social partners, now face.Pension funds play an important role in the Dutch pension system.The participants of these pension fund pay premiums until retirement.In exchange the pension fund promises to pay pensions after retirementaccording to a pension plan. In case of a defined benefit plan (morethan 90% of the pension plans), the pension fund promises to pay theparticipant, say, 70% of the final salary before retirement. To pay thepromised pensions, the pension fund invests the premiums in assets,like stocks and bonds. The future returns on these investments are usedto finance the promised pensions. In case of a defined contribution planthe promised pension payments depend on the returns (gains or losses)on the pension funds investments in stocks, bonds, and real estate.Questions:1. Compare a defined benefit system with a contributed benefit systemfrom a participant’s viewpoint.2. What exactly is the challenge the social partners are facing?3. Compare the financing of old age pensions via pension funds withthe alternative approach, where the government taxes the activeworkers to pay the pensions of the retired workers. Discuss thedifferences between the two pension systems, taking into accountthe aging of the population.Source: International site Dutch Ministry SZW (Social Affairs and Employment)http://internationalezaken.szw.nl.ProgrammeThe programme consists of 60 Credits (ECTS), equivalent to 1680 hoursof study, offered over two semesters. The fi rst semester starts inSeptember, with exams in December and January. The second semesterruns from January to June, but is divided in two. From January to April,you will take two courses. From April on, you will be able to focus onyour Master’s thesis.Semester 1ECTSIntroduction to Economics and Finance ofPensions and Aging 6Microeconomics of Life-cycle Behavior 6Empirical Research in Pension and Retirement Economics 6Investment Analysis of Aging and Pensions I 6Macroeconomics of Pensions and Social Insurance 6Semester 2ECTSTwo courses out of: 12- Psychology of Economic Behavior- Health Economics and Aging- Investment Analysis of Aging andPensions II- Topics in Economics and Finance of Aging• Actuarial Sciences: Life Insurance• General Equilibrium ModelsMaster’s Thesis 18Total 60This programme is provisional. Please refer to the electronic studyguide for the latestupdates: www.tilburguniversity.nl/studyguide.Faculty of Economics and Business Administration 89 Faculty of Economics and Business AdministrationUVT-3-11.indd 8-9 16-04-2007 15:25:57

InterviewInterviewIntroduction Economics and Finance of AgingWhat are the main issues underlying the current worldwide debate aboutthe aging of the population and its consequences for pension systems“People I know are concerned thatfrom a microeconomic, a macroeconomic and an institutional pointthey are going to have to workof view? This course emphasizes the relationships between these threehard in the future to pay for theperspectives.pensions of a huge number ofretirees. I was curious to see whatAdmission RequirementsMacroeconomics of Pensions and Social Insurancekind of solutions economics isA bachelor’s degree in Economics, Econometrics and OperationsThis course aims to give you a better understanding of the challenges ofoffering, and this course has givenResearch, Actuarial Sciences, or Business suffices for entry to theaging on modern welfare states and pension systems. Models of saving,me a lot of insight into that.programme. If you have a different degree the possibility to enterconsumption and economic growth with and without overlapping gene-What I especially liked about theinto the programme will be judged on an individual basis.rations are addressed. Furthermore, the consequences of aging and aging-course was the small-group focus.Prof.Dr. Arthur van SoestMore precisely, the courses in the MSc programme Economics andrelated risks will be analyzed for the public finances and pension sectors.All in all, this course was anProfessor of Econometrics (Tilburg University), Senior economist, RANDFinance of Aging build on a solid academic background at theGenerational accounting (GA) is used to explore distributional, fairnessenjoyable and informative taste ofCorporation (USA), Lecturer MSc Economics and Finance of Agingbachelor’s level in the fields of:and sustainability aspects of generational institutional arrangements.the new Master’s in theEconomics and Finance of Aging.”There is a clear demand for graduates• Macroeconomics• MicroeconomicsEmpirical Research in Pension and Retirement EconomicsHanne de Glas• Statistics and EconometricsThis course focuses on the use of empirical tools from statistics andStudent who took the Netspar course“I am working both in The Netherlands and the USA. Most of my• Financial Economicseconometrics in pension and aging economics. The course discusses theIntroduction to the Economics and Financeresearch is on the economics of aging. For example, I am analysing• Mathematicsmain properties of a variety of standard econometric models and theirof Agingretirement income expectations and realisations. This is important sinceapplication to issues in aging, retirement, pensions, saving, etc. You willpeople’s savings for retirement will depend on what they expect in termsUpon request, the Board EFA may grant the opportunity to rectifylearn to do empirical research yourself and to evaluate empirical researchof pension and social security income after retirement. At the firms anddeficiencies during the MSc programme.that others have done.institutions that participate in Netspar, such as pension funds, insuranceMicroeconomics of Life-cycle behaviorCareer Opportunitiescompanies and ministries, there is a clear demand for graduates fromthe new master’s programme. Nowadays firms and other organisationsProficiency in English is also required. A minimum IELTS score of 6.5, or,alternatively, a minimum TOEFL score of 575 for the paper based versionThis course equips you with the tools to understand the microeconomicAs a graduate, you will have expert scientific knowledge relevant for theexplicitly need expertise to manage pension funds and deal with otheror 233 for the computer-based version is necessary. Scores on separatearguments behind the debate about social insurance, social assistancespecific fields of Aging, Pensions and Retirement, and will have the toolseconomic issues raised by aging of the population. Therefore, someparts are also evaluated, since candidates must possess good reading,and tax policy. You will be able to understand international journalto help improve the quality of the pension institutions and relatedof these organisations cooperate with the master’s programme inwriting, and oral skills. Native English speakers and applicants with aarticles about these topics and actively participate in the policy debate,organisations. The programme prepares you for a career in insuranceEconomics and Finance of Aging, in the form of guest lectures,Bachelor’s degree from a programme entirely in English are exemptedunderstanding the pros and cons of particular policies.companies, pension funds, other financial institutions, the publicproviding internship opportunities, and even by sending their employeesfrom this requirement.sector, and research institutes. All Netspar participants have a needto study in this programme. The programme is organised by Netspar,Investment Analysis of Aging and Pensionsfor graduates of the master’s programme of Economics and Financea network involving all the economic faculties in the Netherlands.You must be able to function both independently and as partThe focus of this course is the investment decisions of institutionsof Aging.The top lecturers in the Netherlands from these faculties will teachof a team of professionals in the field and must therefore have goodas well as individual agents that are related to aging and retirement.part of the courses in Tilburg. The students will come from verycommunication skills. You should be motivated and interested in thePension funds and insurance companies aim to offer (investment)Netspar participants are: ABN AMRO, ABP, Achmea, Aegon, Cordares,diverse backgrounds. One thing they will have in common is that theypractical problems studied by Netspar.products that are attractive for participants or potential clients, selectDNB, Erasmus University Rotterdam, Fortis, Free University Amsterdam,are interested in applying economics or finance at a scientific level.investment portfolios and manage investment risks.ING, Interpolis, Maastricht University, Ministry of Economic Affairs,They will mainly find a carreer in positions as applied researchers, eitherMinistry of Education, Culture and Sciences, Ministry of Finance,in firms or government related organisations or even continue in a PhDFor more information about the programme and the courses, pleaseMinistry of Social Affairs and Employment, Mn Services, NWO, PGGM,study.”refer to the electronic study guide on our web pages atSVB, Stichting Instituut GAK, Tilburg University, University ofwww.tilburguniversity.nl/studyguide.Amsterdam, University of Groningen, Utrecht University.Faculty of Economics and Business Administration 1011 Faculty of Economics and Business AdministrationUVT-3-11.indd 10-11 16-04-2007 15:26:20

Tuition FeeApplication ProceduresThe tuition fees for 2007-2008 will be available in December 2006 onwww.tilburguniversity.nl/prospectivestudents.There are different application procedures for students with a DutchBachelor’s degree and with a non-Dutch Bachelor’s degree.As an indication, the tuition fees for the academic year 2006-2007 are:EEA citizens, € 1519non-EEA citizens with a right to ‘studiefinanciering’,students with an official status as refugee (UAF students)Non-EEA citizens € 9480Do you have a bachelor’s degree from Tilburg University or any otherDutch University?• See the web pages on www.tilburguniversity.nl/mastersDo you have a non-Dutch bachelor’s degree?• See the web pages on www.tilburguniversity.nl/prospectivestudents• See the International Student Services brochure for informationabout application procedures.• To students from EEA countries who do not have a right to‘studiefinanciering’, the Dutch government reimburses € 800 peryear of the tuition fee.• Tuition fee payments are non-refundable if a student mustunexpectedly leave the programme before graduation.• If students do not complete the MSc programme within a year theywill need to register for a second year and pay tuition accordingly.Do you have a Dutch Professional bachelor’s degree (hbo)?• See the web pages on www.uvt.nl/nahbo• See the guide ‘Opleidingen na hbo’Rent € 220EEA CountriesAustria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,Greece, Hungary, Iceland, Italy, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg,Malta, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden,the United Kingdom, also including Switzerland.€ 220Faculty of Economics and Business Administration 1213 Faculty of Economics and Business AdministrationUVT-3-11.indd 12-13 16-04-2007 15:26:37

More InformationOnce you have read this brochure, you may still have some questionsthat cannot be answered within the scope of this brochure.If that is the case, please check our website or send an e-mail tostudy-info@uvt.nl. A professional team of academic advisors, whoare committed to helping you make the right study choices, handlesall incoming e-mails. So please feel free to contact them.WebsiteMore information about the master’s programmes and courses ofTilburg University can be found on the website:ContactStudents with a Dutch bachelor’s degreeAcademic Affairs OfficeFaculty of Economics and Business AdministrationTilburg UniversityKoopmans building, Room 228PO Box 901535000 LE TILBURGThe Netherlandswww.tilburguniversity.nl/mastersThere is a special website for students with a non-Dutch bachelor’sdegree:www.tilburguniversity.nl/prospectivestudentsFor Netspar see:Tel: +31 13 466 3037Fax: +31 13 466 3072E-mail: feb-owb@uvt.nlStudents with a non-Dutch Bachelor’s degreeInternational Affairs OfficeFaculty of Economics and Business AdministrationTilburg Universitywww.netspar.nlKoopmans building, Room 210PO Box 901535000 LE TILBURGThe NetherlandsTel: +31 13 466 2512Fax: +31 13 466 3072E-mail: infofeb@uvt.nlVisiting AddressTilburg UniversityWarandelaan 25037 AB TilburgThe NetherlandsTel +31 (0) 13 466 91 11Colophon: Editing Faculty of Economics and Business Administration, Communications, Freya Jensen, language editingText Zarrea Plaisier, Aniek Verhoeven. Interviews Aniek Verhoeven, Lingxiao Qu. Graphic Design Battery Battery, BredaPhotography Erik van der Burgt, Clemens van Diek, Ton Toemen, Marieke Albers, Wil van Dusseldorp.Printing Tilburg University Printshop, September 2006Faculty of Economics and Business Administration 14UVT-3-11.indd 14-15 16-04-2007 15:26:49

www.tilburguniversity.nl/mastersMaster's programmes• Accounting• Accountancy en Management Control• Economics• Economics and Finance of Aging• Financial Management• Fiscale Economie• Information Management• International Business• International Economics and Finance• Investment Analysis• Logistics and Operations Management• Marketing Management• Marketing Research• Mathematical Economics and Econometric Methods• Operations Research and Management Science• Quantitative Finance and Actuarial Sciences• Research Master in Business• Research Master in Economics• Strategic ManagementUVT-3-11.indd 16 16-04-2007 15:27:03