Master • Economics and Finance of Aging - Tilburg...

Faculty of Economics and Business Administration

2007/2008

Master • Economics and Finance of Aging

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This brochure was prepared with great care. However, Tilburg University reserves the right to change without notice anyprogrammes, policies, requirements or regulations published in this brochure.

3 Introduction

4 Tilburg University Faculty of Economics and Business Administration Netspar

7 Economics and Finance of Ageing At a Glance Characteristics Programme Career Opportunities Admission Requirements

13 Tuition Fee

13 Application Procedures

14 More Information

Did 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 economic

issues and policy questions is studied in the Master’s programme

Economics and Finance of Aging, which started in September 2006.

In this brochure, you will find a detailed description of this unique

MSc programme in Economics and Finance of Aging, offered by

the Faculty of Economics and Business Administration (FEB) of Tilburg

University. This brochure aims to set out what you need to know to

make an informed decision about your graduate studies. To give you a

more personal account of what our graduate programme in Economics

and Finance of Aging is all about, we have also included introductions

by some of our professors.

Separate brochures of the other master’s programmes of the Faculty

of Economics and Business Administration are also available.

For international students there is an additional brochure about

application procedures and the services of the International Affairs

Office. For additional copies of this or other brochures, please send an e-

mail to [email protected].

We are looking forward to receiving your application for the next

academic year and welcoming you to Tilburg University.

IntroductionContents

3 Faculty of Economics and Business Administration

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Tilburg University is an internationally oriented, fully accredited, top

university in the Netherlands. It is well known for its high standards in

education and scientifi c research as well as its excellent support facilities.

In yearly rankings, Tilburg University has taken a leading position for

many years now.

Since 1927, Tilburg University has expanded its horizons and has grown

into a university with six faculties and an Executive Business School

(TIAS, Executive MBA). Specialised in the Social Sciences and the

Humanities, Tilburg University belongs to Europe’s top in business,

economics and law. Its 1,700 staff members provide liberal education

for 11,000 students in the disciplines of Arts, Economics and Business

Administration, Law, Philosophy, Social and Behavioural Sciences,

and Theology.

All study programmes have achieved accreditation by the Dutch Flemish

Validation Council (NVAO). The research programmes offered by

CentER Graduate School (part of the Faculty of Economics and Business

Administration) have also been accredited by the Royal Netherlands

Academy of Arts and Sciences. Additionally, the business programmes

have achieved accreditation by AACSB International. All represent

hallmarks of excellence that make it possible for Tilburg University to

compete not only with European Universities, but also with some of

the best Universities in the world.

Tilburg University invites you to take part in a challenging student life in

a truly international setting. The university has 180 partner universities

on all fi ve continents. You can enjoy interactive teaching in small groups,

including case studies and teamwork. You will have access to all campus

facilities such as wireless internet, a high-tech library, a language

centre and internet cafes. The compact campus set-up offers you the

opportunity to meet professors, researchers, lecturers and students of

different backgrounds and nationalities.

Tilburg UniversityFaculty of Economics and Business Administration

The Faculty of Economics and Business Administration is Tilburg

University’s largest Faculty and the most prestigious one in the

Netherlands. The Faculty enjoys high rankings for its excellent quality

in education and research, for example, it is the current number one

economics research institute in Europe and the number three business

research institute. With about 500 staff members, the Faculty of

Economics and Business Administration offers 32 undergraduate and

graduate programmes in the fi elds of Economics and Business to

approximately 5000 students. Education and research are provided by

the Faculty’s departments: Accountancy, Econometrics and Operations

Research, Economics, Finance, Fiscal Economics, Information Systems

and Management, Marketing, and Organization and Strategy.

The master’s programme in Economics and Finance of Aging is

based on the scientifi c research of Netspar, the Network for Studies

on Pensions, Aging and Retirement.

Degree Programmes

Undergraduate Programmes Graduate Programmes

8 BSc Programmes 17 MSc Programmes

2 MPhil Programmes

2 Post-graduate Programmes

3 PhD Programmes

Rankings

The Faculty of Economics and Business Administration is consistently

ranked in the top best universities in Europe.

Some of the most recent rankings:

- Number one in Economics research in Europe (Journal of the

European Economic Association, 2003)

- Number three in Economics research in Europe

(www.econphd.net 2006)

- Number three in Business research in Europe (University of Texas

at Dallas, 2005)

Faculty of Economics and Business Administration 4 5 Faculty of Economics and Business Administration

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Netspar

Netspar is a network for research and education in the field of pensions,

aging and retirement. It is an independent network composed of

academics and practitioners in the field, supported by universities

as well as private and public institutions with an interest in Netspar’s

research topics. The initiative to establish Netspar was taken by the

Faculty of Economics and Business Administration and the Faculty

of Social and Behavioural Sciences of Tilburg University.

Netspar formulates and executes three independent and internationally

oriented scientific research programmes on pensions, aging and

social 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 financial

institutions

Netspar provides critical mass to these programmes by bringing

together academic researchers from different fields, disciplines,

backgrounds and institutions.

More information about Netspar is available at

www.netspar.nl

Interview

Prof.Dr. Lans Bovenberg

Academic Director of Netspar, Winner Spinoza prize (the ‘Dutch Nobel

prize’) in 2004. He is one of the most-cited national and international

Dutch economists

Find a new way of dealing with the aging problem

“One of my research interests is risk sharing in the society. For young

people absorbing risk is not so diffi cult, but it is more diffi cult for old

people who do not like risks. With the increasing number of old people,

risk sharing is becoming more expensive and challenging. We have to

fi nd a new way of dealing with the aging problem, fi nd the people who

can best bear the risk. Taking risks is good for economic growth and

innovation, as well as entrepreneurship, but how to allocate the risk

more effi ciently through pension systems, that is the question. Another

interest, also close to this master’s programme, is the difference in life

cycle 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 social

security expenses are contained in several western countries, as people

take more responsibility for their own lives.

This programme involves its student’s future employers, such as pension

funds, insurers and government agencies. It will be a combination of

working and learning, and students will learn to use different perspectives

like Finance, Economics and Econometrics, to analyse a single problem.

Aging and Pension may sound less interesting to young people, but if

you 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 business

and society. We are looking for well-rounded students who want to get the

very best out of themselves. They should have keen interests in different

countries, as aging is a global issue. They should also be able to put

various instruments and perspectives together, such as commercial

fi rms, non-profi t organisations, and the government.”

Economics and Financeof Aging

Faculty of Economics and Business Administration 6

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At a GlanceName Economics and Finance of Aging

Duration 1-year master’s programme

Type full-time

Title Master of Science

Education On-campus only (no distance learning),

lectures and workshops

Language of Instruction English

Exams written exams, papers, assignments

Best Preparatory Bachelor’s Economics, Econometrics and Operations

Research, Business, Actuarial Sciences

Core Courses Intro. Economics and Finance of Aging,

Microeconomics of Life Cycle Behaviour,

Microeconomics of Pensions and Social

Insurance, Empirical Research in Pension

and Retirement Economics,

Investment Analysis of Aging and Pensions I

Career Opportunities Insurance companies, pension funds,

ministries and other private and public

sector institutions

Start September

Information Day 23 November 2006 and 22 February 2007

More Information www.tilburguniversity.nl/masters

Economics and Finance of Aging

The Pension Challenge

The affordability of old age provisions is coming under pressure

because The Netherlands, like other EU countries, has to contend with

the consequences of an aging population. (…) This is the challenge the

government, pension funds and the central organisations of employers

and 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 retirement

according to a pension plan. In case of a defined benefit plan (more

than 90% of the pension plans), the pension fund promises to pay the

participant, say, 70% of the final salary before retirement. To pay the

promised pensions, the pension fund invests the premiums in assets,

like stocks and bonds. The future returns on these investments are used

to finance the promised pensions. In case of a defined contribution plan

the 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 system

from 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 with

the alternative approach, where the government taxes the active

workers to pay the pensions of the retired workers. Discuss the

differences between the two pension systems, taking into account

the 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 hours

of study, offered over two semesters. The fi rst semester starts in

September, with exams in December and January. The second semester

runs 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 on

your Master’s thesis.

Semester 1 ECTS

Introduction to Economics and Finance of

Pensions and Aging 6

Microeconomics of Life-cycle Behavior 6

Empirical Research in Pension and Retirement Economics 6

Investment Analysis of Aging and Pensions I 6

Macroeconomics of Pensions and Social Insurance 6

Semester 2 ECTS

Two courses out of: 12

- Psychology of Economic Behavior

- Health Economics and Aging

- Investment Analysis of Aging and

Pensions II

- Topics in Economics and Finance of Aging

• Actuarial Sciences: Life Insurance

• General Equilibrium Models

Master’s Thesis 18

Total 60

This programme is provisional. Please refer to the electronic studyguide for the latest

updates: www.tilburguniversity.nl/studyguide.

Characteristics The issue of life expectancy has major economic implications – not only

on an individual level, but also on a global scale. How do we maintain a

sustainable pension system? How do pensioners spend their money and

how do they make financial decisions? What is the impact of ageing on

economics and finance in general? In this programme you are examining

the various topics from a multidisciplinary perspective. So besides the

economic factors, you will also be taking into consideration health issues

and the psychological aspects of this worldwide problem of having a

population that is ageing at a fast rate.

The MSc in Economics and Finance of Ageing offers you the opportunity

to communicate and cooperate on coursework, assignments, etc. with

employees from Netspar participants who will also take part in some

of the courses. This means that the programme is strongly embedded

in Netspar, the Network for Studies on Pensions, Aging and Retirement.

Netspar’s main concern is increasing the awareness of practitioners

at financial institutes about the macroeconomic and microeconomic

implications 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 and

students. Students will be challenged to actively participate in the

lectures, will get assignments and will be asked to come up with

their own suggestions to apply theory to real problems.

The world’s first MSc in the field of aging, pensions and retirement

Case


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Introduction Economics and Finance of Aging

What are the main issues underlying the current worldwide debate about

the aging of the population and its consequences for pension systems

from a microeconomic, a macroeconomic and an institutional point

of view? This course emphasizes the relationships between these three

perspectives.

Macroeconomics of Pensions and Social Insurance

This course aims to give you a better understanding of the challenges of

aging on modern welfare states and pension systems. Models of saving,

consumption and economic growth with and without overlapping gene-

rations are addressed. Furthermore, the consequences of aging and aging-

related risks will be analyzed for the public finances and pension sectors.

Generational accounting (GA) is used to explore distributional, fairness

and sustainability aspects of generational institutional arrangements.

Empirical Research in Pension and Retirement Economics

This course focuses on the use of empirical tools from statistics and

econometrics in pension and aging economics. The course discusses the

main properties of a variety of standard econometric models and their

application to issues in aging, retirement, pensions, saving, etc. You will

learn to do empirical research yourself and to evaluate empirical research

that others have done.

Microeconomics of Life-cycle behavior

This course equips you with the tools to understand the microeconomic

arguments behind the debate about social insurance, social assistance

and tax policy. You will be able to understand international journal

articles about these topics and actively participate in the policy debate,

understanding the pros and cons of particular policies.

Investment Analysis of Aging and Pensions

The focus of this course is the investment decisions of institutions

as well as individual agents that are related to aging and retirement.

Pension funds and insurance companies aim to offer (investment)

products that are attractive for participants or potential clients, select

investment portfolios and manage investment risks.

For more information about the programme and the courses, please

refer to the electronic study guide on our web pages at

www.tilburguniversity.nl/studyguide.

Admission RequirementsA bachelor’s degree in Economics, Econometrics and Operations

Research, Actuarial Sciences, or Business suffices for entry to the

programme. If you have a different degree the possibility to enter

into the programme will be judged on an individual basis.

More precisely, the courses in the MSc programme Economics and

Finance of Aging build on a solid academic background at the

bachelor’s level in the fields of:

• Macroeconomics

• Microeconomics

• Statistics and Econometrics

• Financial Economics

• Mathematics

Upon request, the Board EFA may grant the opportunity to rectify

deficiencies during the MSc programme.

Proficiency in English is also required. A minimum IELTS score of 6.5, or,

alternatively, a minimum TOEFL score of 575 for the paper based version

or 233 for the computer-based version is necessary. Scores on separate

parts are also evaluated, since candidates must possess good reading,

writing, and oral skills. Native English speakers and applicants with a

Bachelor’s degree from a programme entirely in English are exempted

from this requirement.

You must be able to function both independently and as part

of a team of professionals in the field and must therefore have good

communication skills. You should be motivated and interested in the

practical problems studied by Netspar.

Interview

Prof.Dr. Arthur van Soest

Professor of Econometrics (Tilburg University), Senior economist, RAND

Corporation (USA), Lecturer MSc Economics and Finance of Aging

There is a clear demand for graduates

“I am working both in The Netherlands and the USA. Most of my

research is on the economics of aging. For example, I am analysing

retirement income expectations and realisations. This is important since

people’s savings for retirement will depend on what they expect in terms

of pension and social security income after retirement. At the firms and

institutions that participate in Netspar, such as pension funds, insurance

companies and ministries, there is a clear demand for graduates from

the new master’s programme. Nowadays firms and other organisations

explicitly need expertise to manage pension funds and deal with other

economic issues raised by aging of the population. Therefore, some

of these organisations cooperate with the master’s programme in

Economics and Finance of Aging, in the form of guest lectures,

providing internship opportunities, and even by sending their employees

to study in this programme. The programme is organised by Netspar,

a network involving all the economic faculties in the Netherlands.

The top lecturers in the Netherlands from these faculties will teach

part of the courses in Tilburg. The students will come from very

diverse backgrounds. One thing they will have in common is that they

are interested in applying economics or finance at a scientific level.

They will mainly find a carreer in positions as applied researchers, either

in firms or government related organisations or even continue in a PhD

study.”

Career OpportunitiesAs a graduate, you will have expert scientific knowledge relevant for the

specific fields of Aging, Pensions and Retirement, and will have the tools

to help improve the quality of the pension institutions and related

organisations. The programme prepares you for a career in insurance

companies, pension funds, other financial institutions, the public

sector, and research institutes. All Netspar participants have a need

for graduates of the master’s programme of Economics and Finance

of Aging.

Netspar participants are: ABN AMRO, ABP, Achmea, Aegon, Cordares,

DNB, Erasmus University Rotterdam, Fortis, Free University Amsterdam,

ING, Interpolis, Maastricht University, Ministry of Economic Affairs,

Ministry of Education, Culture and Sciences, Ministry of Finance,

Ministry of Social Affairs and Employment, Mn Services, NWO, PGGM,

SVB, Stichting Instituut GAK, Tilburg University, University of

Amsterdam, University of Groningen, Utrecht University.

“People I know are concerned that

they are going to have to work

hard in the future to pay for the

pensions of a huge number of

retirees. I was curious to see what

kind of solutions economics is

offering, and this course has given

me a lot of insight into that.

What I especially liked about the

course was the small-group focus.

All in all, this course was an

enjoyable and informative taste of

the new Master’s in the

Economics and Finance of Aging.”

Interview

Hanne de Glas

Student who took the Netspar course

Introduction to the Economics and Finance

of Aging


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The tuition fees for 2007-2008 will be available in December 2006 on

www.tilburguniversity.nl/prospectivestudents.

As an indication, the tuition fees for the academic year 2006-2007 are:

EEA citizens, € 1519

non-EEA citizens with a right to ‘studiefinanciering’,

students with an official status as refugee (UAF students)

Non-EEA citizens € 9480

• To students from EEA countries who do not have a right to

‘studiefinanciering’, the Dutch government reimburses € 800 per

year of the tuition fee.

• Tuition fee payments are non-refundable if a student must

unexpectedly leave the programme before graduation.

• If students do not complete the MSc programme within a year they

will need to register for a second year and pay tuition accordingly.

EEA Countries

Austria, 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.

€ 220

Tuition Fee

There are different application procedures for students with a Dutch

Bachelor’s degree and with a non-Dutch Bachelor’s degree.

Do you have a bachelor’s degree from Tilburg University or any other

Dutch University?

• See the web pages on www.tilburguniversity.nl/masters

Do you have a non-Dutch bachelor’s degree?

• See the web pages on www.tilburguniversity.nl/prospectivestudents

• See the International Student Services brochure for information

about application procedures.

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 € 220

Application Procedures


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Once you have read this brochure, you may still have some questions

that cannot be answered within the scope of this brochure.

If that is the case, please check our website or send an e-mail to

[email protected]. A professional team of academic advisors, who

are committed to helping you make the right study choices, handles

all incoming e-mails. So please feel free to contact them.

Website

More information about the master’s programmes and courses of

Tilburg University can be found on the website:

www.tilburguniversity.nl/masters

There is a special website for students with a non-Dutch bachelor’s

degree:

www.tilburguniversity.nl/prospectivestudents

For Netspar see:

www.netspar.nl

More Information

Contact

Students with a Dutch bachelor’s degree

Academic Affairs Office


Tilburg University

Koopmans building, Room 228

PO Box 90153

5000 LE TILBURG

The Netherlands

Tel: +31 13 466 3037

Fax: +31 13 466 3072

E-mail: [email protected]

Students with a non-Dutch Bachelor’s degree

International Affairs Office


Tilburg University

Koopmans building, Room 210

PO Box 90153

5000 LE TILBURG

The Netherlands

Tel: +31 13 466 2512

Fax: +31 13 466 3072

E-mail: [email protected]

Visiting Address

Tilburg University

Warandelaan 2

5037 AB Tilburg

The Netherlands

Tel +31 (0) 13 466 91 11

Colophon: Editing Faculty of Economics and Business Administration, Communications, Freya Jensen, language editing

Text Zarrea Plaisier, Aniek Verhoeven. Interviews Aniek Verhoeven, Lingxiao Qu. Graphic Design Battery Battery, Breda

Photography Erik van der Burgt, Clemens van Diek, Ton Toemen, Marieke Albers, Wil van Dusseldorp.

Printing Tilburg University Printshop, September 2006

Faculty of Economics and Business Administration 14

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Master'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 Management

www.tilburguniversity.nl/masters

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