The Optimal Mix Between Funded and Unfunded Pension Systems When People Care About Relative Consumption
Bibliographic Data
| ID | 9724315 |
|---|---|
| Authors | MARKUS KNELL (0000-0003-1620-1651, National Bank of Austria, corresponding author) |
| Year | 2010 |
| Volume | 77 |
| Issue | 308 |
| Pages | 710-733 |
| Publication date | 2010-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-0335.2009.00797.x |
| OpenAlex | W1546090064 |
| Language | EN |
| Citations received | 2 |
| References cited | 29 |
The paper studies the optimal portfolio mix between funded and unfunded pension systems when people care about relative consumption. In pay‐as‐you‐go systems with fixed contribution rates, pensions are tied to wages. This lowers the uncertainty of individuals' future relative position thereby increasing the attractiveness of unfunded systems. The paper shows analytically that the optimal share of funding decreases with the importance of relative standing. A calibrated version of the model suggests that the concern for relative standing has also a quantitatively important impact on the optimal share of funding. For reasonable assumptions it is typically around 20
Actuarial science · Attractiveness · Consumption (sociology) · Economics · Microeconomics · Pension · Portfolio · Position (finance) · Finance · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Retirement, Disability, and Employment
Income, saving, and the theory of consumer behavior
Old-Age Income Support in the 21st Century
Poor, Relatively Speaking
Reforming Social Security
Pensions as a portfolio problem
A note on intergenerational risk sharing and the design of pay-as-you-go pension programs
By Force of Habit
Reforming Pensions
Measuring Future Grandparents' Preferences for Equality and Relative Standing
Social status and economic performance
Relative Income, Happiness, and Utility
The World Economy
Prospects for Social Security Reform
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2020 - 2021 (2) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |