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Pensions and Intergenerational Risk-Sharing When Relative Consumption Matters Author info | Abstract | Publisher info | Download info | Related research | Statistics Ennio Bilancini ()
Massimo D'Antoni ()
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Concern for relative consumption introduces an additional source of risk for future pensioners. We study its implications, in terms of optimal risk diversification, for the choice of the mix between a pay-as-you-go and a funded pension systems. We identify a necessary and sufficient condition for the optimal share of pay-as-you-go to be larger when relative consumption matters. We argue that when model parameters assume reasonable values such condition is satisfied
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Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number
541.
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Date of creation: Aug 2008Date of revision:
Handle: RePEc:usi:wpaper:541Contact details of provider: Postal: Piazza S.Francesco,7 - 53100 Siena Phone: (39)(0577)298645 Fax: (39)(0577)298661 Email: Web page: http://www.econ-pol.unisi.it/ More information through EDIRC
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Keywords: pay-as-you-go pensions ; fully funded pensions ; relative consumption ; inter-generational risk-sharing ; Other versions of this item:
Find related papers by JEL classification: H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports :
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