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Insulations of pensions from Political Risk

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  • Diamond, P.

Abstract

There are many sources of political risk to public provision of pensions. This paper analyzes legislation to alter the retirement income system. This approach naturally recognizes that some changes in the system are good responses to social risks, while others generate such risks. Thus the discussion is in terms of the effect of institutional structure on the likelihood of alternative legislative actions. Particular attention is paid to the roles of automatic pension adjustment and pension professionals in providing insulation. Briefly touched upon is the tendency of legislation to redistribute as a function of the type of system being created.
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Suggested Citation

  • Diamond, P., 1994. "Insulations of pensions from Political Risk," Working papers 94-20, Massachusetts Institute of Technology (MIT), Department of Economics.
  • Handle: RePEc:mit:worpap:94-20
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    References listed on IDEAS

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    Cited by:

    1. Steven A. Sass, 2014. "Privatizing Railroad Retirement," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number prr, November.
    2. Alessandro Bucciol, 2006. "The Roles of Temptation and Social Security in Explaining Individual Behavior," "Marco Fanno" Working Papers 0032, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Patrick Artus & Florence Legros, 1997. "Vieillissement de la population, pouvoir électoral, système de retraites et croissance," Revue Économique, Programme National Persée, vol. 48(4), pages 899-920.
    4. Ghilarducci, Teresa & Liebana, Patricia Ledesma, 2000. "Unions' Role in Argentine and Chilean Pension Reform," World Development, Elsevier, vol. 28(4), pages 753-762, April.
    5. Ayşe İmrohoroğlu & Selahattin İmrohoroğlu & Douglas H. Joines, 2003. "Time-Inconsistent Preferences and Social Security," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 745-784.
    6. Alonso-García, J. & Devolder, P., 2016. "Optimal mix between pay-as-you-go and funding for DC pension schemes in an overlapping generations model," Insurance: Mathematics and Economics, Elsevier, vol. 70(C), pages 224-236.
    7. Garon, Jean-Denis, 2016. "The commitment value of funding pensions," Economics Letters, Elsevier, vol. 145(C), pages 11-14.

    More about this item

    Keywords

    pension funds ; social welfare ; risk;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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