Private Pensions as Corporate Debt
AbstractThis paper begins by examining the ways in which pension liabilities are and are not like corporate bonds. Some conceptual issues involved in valuing future pension obligations are then discussed. The second section considers the advantage to firms of fully funding their pension obligations and the reasons why many firms nevertheless choose to have unfunded obligations. The third section then summarizes the results of research on the effect of unfunded pension liabilities on the equity value of firms. The first three sections thus consider the role of pensions at the level of the individual firm. The two sections that follow focus on the current and future role of pensions in the national economy. More specifically, section 4 examines the effect of private pensions on the nation's saving rate, paying special attention to the implication of unfunded pension obligations. The fifth section then discusses the impact of inflation on the private pension system and the likely future for indexed and unindexed private pensions.
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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0703.
Date of creation: Jul 1982
Date of revision:
Publication status: published as Feldstein, Martin. "Private Pensions as Corporate Debt." The Changing Rolesof Debt and Equity in Financing U.S. Capital Formation, edited by Benjamin M. Friedman, pp. 75-90. Chicago: University of Chicago Press, 1982.
Note: ME PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
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.:
- Barro, Robert J, 1974.
"Are Government Bonds Net Wealth?,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
- Feldstein, Martin & Seligman, Stephanie, 1981.
"Pension Funding, Share Prices, and National Savings,"
Journal of Finance,
American Finance Association, vol. 36(4), pages 801-24, September.
- Martin Feldstein & Stephanie Seligman, 1980. "Pension Funding, Share Prices, and National Saving," NBER Working Papers 0509, National Bureau of Economic Research, Inc.
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Feldstein, Martin, 1978.
"Do private pensions increase national savings?,"
Journal of Public Economics,
Elsevier, vol. 10(3), pages 277-293, December.
- Zvi Bodie, 1980. "Purchasing-Power Annuities: Financial Innovation for Stable Real Retirement Income in an Inflationary Environment," NBER Working Papers 0442, National Bureau of Economic Research, Inc.
- Feldstein, Martin, 1981.
"Private Pensions and Inflation,"
American Economic Review,
American Economic Association, vol. 71(2), pages 424-28, May.
- Martin S. Feldstein & Daniel R. Feenberg, 1983.
"Alternative Tax Rules and Personal Saving Incentives: Microeconomic Data and Behavioral Simulations,"
in: Behavioral Simulation Methods in Tax Policy Analysis, pages 173-210
National Bureau of Economic Research, Inc.
- Martin Feldstein & Daniel Feenberg, 1981. "Alternative Tax Rules and Personal Savings Incentives: Microeconomic Data and Behavioral Simulations," NBER Working Papers 0681, National Bureau of Economic Research, Inc.
- Martin Feldstein & James M. Poterba, 1980. "State and Local Taxes and the Rate of Return on Nonfinancial Corporate Capital (revised as W0740)," NBER Working Papers 0508, National Bureau of Economic Research, Inc.
- Martin Feldstein, 1981.
"Should Private Pensions Be Indexed?,"
NBER Working Papers
0787, National Bureau of Economic Research, Inc.
- Zvi Bodie, 1988. "Pension Fund Investment Policy," NBER Working Papers 2752, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.