scholarly journals Optimal Intergenerational Risk-Sharing When Stock and Labor Markets Are Co-Integrated

2020 ◽  
Author(s):  
Ilja Boelaars ◽  
Roel Mehlkopf

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










2021 ◽  
pp. 1-32
Author(s):  
Xiaobai Zhu ◽  
Mary Hardy ◽  
David Saunders

ABSTRACT Target benefit (TB) plans that incorporate intergenerational risk sharing have been demonstrated to be welfare improving over the long term. However, there has been little discussion of the short-term benefits for members in a defined benefit (DB) plan that is transitioning to TB. In this paper, we adopt a two-step approach that is designed to ensure the long-term sustainability of the new plan, without unduly sacrificing the benefit security of current retirees. We propose a cohort-based transition plan for reducing intergenerational inequity. Our study is based on simulations using an economic scenario generator with some theoretical results under simplified settings.



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