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Analysis of the Performance of the Management of the Automatic Balancing Mechanism

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  • Filipe Aleman Serrano

    (Ph.D. student in Management, University of Évora and CEFAGE)

Abstract

Starting from an equilibrium state it is developed a theoretical study on the performance of the management of the Swedish notional defined contribution (NDC) system, under a set of stress scenarios, in terms of solvency and equity with and without its automatic balancing mechanism. The solvency analysis comprises its intrinsic and long term performance. The solvency and equity performance of the Swedish NDC are also analysed, when a new contributory regime based on a notional defined contribution system is immediately adopted to the Portuguese economic and demographic environment, as of the beginning of 2014, inspired by the principles of the Swedish model, abandoning the old age public pension scheme in force in Portugal.

Suggested Citation

  • Filipe Aleman Serrano, 2015. "Analysis of the Performance of the Management of the Automatic Balancing Mechanism," CEFAGE-UE Working Papers 2015_03, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2015_03
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    References listed on IDEAS

    as
    1. Settergren, Ole & Mikula, Boguslaw D., 2005. "The rate of return of pay-as-you-go pension systems: a more exact consumption-loan model of interest," Journal of Pension Economics and Finance, Cambridge University Press, vol. 4(2), pages 115-138, July.
    2. Filipe Aleman Serrano, 2014. "Notional Defined Contribution Accounts: Application to Portugal," CEFAGE-UE Working Papers 2014_04, University of Evora, CEFAGE-UE (Portugal).
    3. Settergren, Ole & Mikula, Boguslaw D., 2005. "The Rate of Return of Pay-As-You-Go Pension Systems: A More Exact Consumption-Loan Model of Interest," Discussion Paper 249, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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    More about this item

    Keywords

    Notional defined contributions accounts; Automatic balancing mechanism; Solvency; Equity; Stress test scenarios; Swedish Public Pension system.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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