Differentiating Indexation in Dutch Pension Funds
AbstractThis discussion paper led to a publication in 'De Economist' , 159(3), 323-360. We investigate numerically how indexation of funded pensions for inflation can be differ-entiated across the various groups of fund participants. The pension arrangement is modelledafter the Dutch situation. While the aggregate welfare consequences are small, group-specific consequences are more substantial with the workers and future born losing and retirees bene-fitting from a shift away from uniform indexation. Those welfare shifts result from systematicredistribution of welfare rather than shifts in the benefit of risk sharing provided by the system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-128/2.
Date of creation: 14 Dec 2010
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
indexation; funded pensions; welfare effects; pension buffers; stochastic simulations;
Other versions of this item:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-12-23 (Economics of Ageing)
- NEP-ALL-2010-12-23 (All new papers)
- NEP-CMP-2010-12-23 (Computational Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Loriana Pelizzon & Guglielmo Weber, 2007.
"Efficient Portfolios when Housing Needs Change over the Life-Cycle,"
2007_31, Department of Economics, University of Venice "Ca' Foscari".
- Pelizzon, Loriana & Weber, Guglielmo, 2009. "Efficient portfolios when housing needs change over the life cycle," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2110-2121, November.
- Loriana Pelizzon & Guglielmo Weber, 2007. "Efficient Portfolios when Housing Needs Change over the Life-Cycle," "Marco Fanno" Working Papers 0037, Dipartimento di Scienze Economiche "Marco Fanno".
- Ayse Imrohoroglu & Selahattin Imrohoroglu & Douglas H. Joines, 2000.
"Time inconsistent preferences and Social Security,"
Discussion Paper / Institute for Empirical Macroeconomics
136, Federal Reserve Bank of Minneapolis.
- Hurst, Erik & Willen, Paul, 2007.
"Social security and unsecured debt,"
Journal of Public Economics,
Elsevier, vol. 91(7-8), pages 1273-1297, August.
- Charles L. Evans & David A. Marshall, 1997.
"Monetary policy and the term structure of nominal interest rates: evidence and theory,"
Working Paper Series, Macroeconomic Issues
WP-97-10, Federal Reserve Bank of Chicago.
- Evans, Charles L. & Marshall, David A., 1998. "Monetary policy and the term structure of nominal interest rates: Evidence and theory," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 49(1), pages 53-111, December.
- Heaton, John & Lucas, Deborah, 2000. "Portfolio Choice in the Presence of Background Risk," Economic Journal, Royal Economic Society, vol. 110(460), pages 1-26, January.
- Enders, Walter & Lapan, Harvey E., 1982.
"Social Security Taxation and Inter-Generational Risk Sharing,"
Staff General Research Papers
10822, Iowa State University, Department of Economics.
- Enders, Walter & Lapan, Harvey E, 1982. "Social Security Taxation and Intergenerational Risk Sharing," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 647-58, October.
- Luigi Guiso & Tullio Jappelli, 2000.
"Household Portfolios in Italy,"
CSEF Working Papers
43, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Henning Bohn, 2001.
"Social Security and Demographic Uncertainty: The Risk-Sharing Properties of Alternative Policies,"
in: Risk Aspects of Investment-Based Social Security Reform, pages 203-246
National Bureau of Economic Research, Inc.
- Henning Bohn, 1999. "Social Security and Demographic Uncertainty: The Risk Sharing Properties of Alternative Policies," NBER Working Papers 7030, National Bureau of Economic Research, Inc.
- Beetsma, R.M.W.J. & Schotman, P.C., 1998.
"Measuring Risk Attitudes in a Natural Experiment: Data from The Television Game Show LINGO,"
98-48, Southern California - School of Business Administration.
- Beetsma, Roel M W J & Schotman, Peter C, 2001. "Measuring Risk Attitudes in a Natural Experiment: Data from the Television Game Show Lingo," Economic Journal, Royal Economic Society, vol. 111(474), pages 821-48, October.
- Beetsma, Roel & Schotman, Peter C, 1998. "Measuring Risk Attitudes in a Natural Experiment: Data from the Television Game Show LINGO," CEPR Discussion Papers 1893, C.E.P.R. Discussion Papers.
- Qiang Dai & Kenneth J. Singleton, 2000. "Specification Analysis of Affine Term Structure Models," Journal of Finance, American Finance Association, vol. 55(5), pages 1943-1978, October.
- Ponds, E.H.M., 2008. "Naar meer Jong en Oud in Collectieve Pensioenen," Open Access publications from Tilburg University urn:nbn:nl:ui:12-378198, Tilburg University.
- Hansen, G.D., 1991.
"The Cyclical and Secular Behavior of the Labor Input : Comparing Efficiency Units and Hours Worked,"
36, California Los Angeles - Applied Econometrics.
- Hansen, G D, 1993. "The Cyclical and Secular Behaviour of the Labour Input: Comparing Efficiency Units and Hours Worked," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(1), pages 71-80, Jan.-Marc.
- Robert C. Merton, 1983. "On the Role of Social Security as a Means for Efficient Risk Sharing in an Economy Where Human Capital Is Not Tradable," NBER Chapters, in: Financial Aspects of the United States Pension System, pages 325-358 National Bureau of Economic Research, Inc.
- Coen Teulings & Casper Vries, 2006.
"Generational Accounting, Solidarity and Pension Losses,"
Springer, vol. 154(1), pages 63-83, 03.
- Coen N. Teulings & Casper G. de Vries, 2003. "Generational Accounting, Solidarity and Pension Losses," Tinbergen Institute Discussion Papers 03-094/3, Tinbergen Institute.
- de Vries, Casper G & Teulings, Coen N, 2004. "Generational Accounting, Solidarity and Pension Losses," CEPR Discussion Papers 4209, C.E.P.R. Discussion Papers.
- Teulings, Coen & de Vries, Casper G., 2003. "Generational Accounting, Solidarity and Pension Losses," IZA Discussion Papers 961, Institute for the Study of Labor (IZA).
- Bodie, Zvi & Merton, Robert C. & Samuelson, William F., 1992.
"Labor supply flexibility and portfolio choice in a life cycle model,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 16(3-4), pages 427-449.
- Zvi Bodie & Robert C. Merton & William F. Samuelson, 1992. "Labor Supply Flexibility and Portfolio Choice in a Life-Cycle Model," NBER Working Papers 3954, National Bureau of Economic Research, Inc.
- Cui, Jiajia & Jong, Frank De & Ponds, Eduard, 2011. "Intergenerational risk sharing within funded pension schemes," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(01), pages 1-29, January.
- Jan Bonenkamp & Ed Westerhout, 2010. "Intergenerational risk sharing and labour supply in collective funded pension schemes with defined benefits," CPB Discussion Paper 151, CPB Netherlands Bureau for Economic Policy Analysis.
- Casper van Ewijk & Nick Draper & Harry ter Rele & Ed Westerhout, 2006. "Ageing and the sustainability of Dutch public finances," CPB Special Publication 61, CPB Netherlands Bureau for Economic Policy Analysis.
- Alessandro Bucciol & Roel Beetsma, 2009.
"Inter- and Intra-generational Consequences of Pension Buffer Policy under Demographic, Financial and Economic Shocks,"
CESifo Working Paper Series
2779, CESifo Group Munich.
- Alessandro Bucciol & Roel M.W.J. Beetsma, 2010. "Inter- and Intra-generational Consequences of Pension Buffer Policy under Demographic, Financial, and Economic Shocks," CESifo Economic Studies, CESifo, vol. 56(3), pages 366-403, September.
- Carter, Lawrence R. & Lee, Ronald D., 1992. "Modeling and forecasting US sex differentials in mortality," International Journal of Forecasting, Elsevier, vol. 8(3), pages 393-411, November.
- Tom Krebs, 2005.
"Job Displacement Risk and the Cost of Business Cycles,"
2005 Meeting Papers
188, Society for Economic Dynamics.
- Tom Krebs, 2007. "Job Displacement Risk and the Cost of Business Cycles," American Economic Review, American Economic Association, vol. 97(3), pages 664-686, June.
- Tom Krebs, 2004.
"Welfare Cost of Business Cycles When Markets Are Incomplete,"
2004-08, Brown University, Department of Economics.
- tom krebs, 2004. "welfare cost of business cycles when markets are incomplete," Econometric Society 2004 North American Summer Meetings 283, Econometric Society.
- Michael J. Brennan & Yihong Xia, 2002. "Dynamic Asset Allocation under Inflation," Journal of Finance, American Finance Association, vol. 57(3), pages 1201-1238, 06.
- Alessie, R.J.M. & Hochgürtel, S. & Soest, A.H.O. van, 2000. "Household Portfolios in the Netherlands," Discussion Paper 2000-55, Tilburg University, Center for Economic Research.
- Karolina Goraus & Krzysztof Makarski & Joanna Tyrowicz, 2014. "Does social security reform reduce gains from increasing the retirement age?," Working Papers 2014-03, Faculty of Economic Sciences, University of Warsaw.
- Dirk Broeders & Paul Hilbers & David Rijsbergen & Ningli Shen, 2014. "What Drives Pension Indexation in Turbulent Times? An Empirical Examination of Dutch Pension Funds," De Economist, Springer, vol. 162(1), pages 41-70, March.
- Dirk Broeders & Paul Hilbers & David Rijsbergen, 2013. "What drives pension indexation in turbulent times? An empirical examination of Dutch pension funds," DNB Working Papers 368, Netherlands Central Bank, Research Department.
- Marcin Bielecki & Karolina Goraus & Jan Hagemejer & Joanna Tyrowicz, 2014. "The Sooner The Better - The Welfare Effects of the Retirement Age Increase Under Various Pension Schemes," Working Papers 2014-12, Faculty of Economic Sciences, University of Warsaw.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.