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Eliciting Individual Preferences for Pension Reform

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Author Info
Yosr Abid Fourati ()
Cathal O'Donoghue ()
Abstract

Pension systems have recently been under scrutiny because of the expected population ageing threatening its sustainability. This paper’s contribution to the debate is from a political economic perspective as it uses data from a Choice Experiment to investigate individual preferences for an alternative state pension scheme. Answers are used to estimate a life-cycle utility model of preferences towards pensions’ parameters. Results suggest that individuals’ value orientation is an important determinant of their preferences. Respondents’ income determines which degree of redistribution is preferred. However, preferences according to age are in contradiction with what is suggested in theory.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2770.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2770

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Related research
Keywords: population ageing; pension system reform; redistribution; stated preferences;

Find related papers by JEL classification:
H00 - Public Economics - - General - - - General
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General

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