Intergenerational Risk Sharing and Endogenous Labour Supply within Funded Pension Schemes

Economica ◽  
2014 ◽  
Vol 81 (323) ◽  
pp. 566-592 ◽  
Author(s):  
Jan Bonenkamp ◽  
Ed Westerhout



2010 ◽  
Vol 10 (1) ◽  
pp. 1-29 ◽  
Author(s):  
JIAJIA CUI ◽  
FRANK DE JONG ◽  
EDUARD PONDS

AbstractIs intergenerational risk sharing desirable and feasible in funded pension schemes? Using a multi-period OLG model, we study risk sharing between generations for a variety of realistic collective funded pension schemes, where pension benefits and contributions may depend on the funding ratio and the asset returns. We find that well-structured intergenerational risk sharing via collective schemes can be welfare-enhancing vis-à-vis the optimal individual benchmark. Moreover, from an ex ante perspective the expected welfare gain of the current entry cohort is not at the cost of the older and future cohorts.





2015 ◽  
Vol 16 (4) ◽  
pp. 467-484 ◽  
Author(s):  
NICK DRAPER ◽  
ED WESTERHOUT ◽  
ANDRÉ NIBBELINK

AbstractTraditionally, collective defined benefit pension schemes have played an important role in the provision of pensions. Various trends such as population ageing put these schemes under serious pressure, however. Whether this is good or bad depends among other things on two factors: one is the value of the risk sharing between generations that is organized by pension schemes, and another is the cost of the distortions of labour supply decisions that these collective schemes imply. This paper constructs a model with overlapping generations of households and a pension scheme to assess the role of these two factors. The paper finds that the welfare gain from intergenerational risk sharing generally dominates the cost of labour supply distortions.



2010 ◽  
Vol 94 (9-10) ◽  
pp. 628-637 ◽  
Author(s):  
Marcello D'Amato ◽  
Vincenzo Galasso




Sign in / Sign up

Export Citation Format

Share Document