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Eliciting Individual Preferences for Pension Reform

Author

Listed:
  • Yosr Abid Fourati
  • Cathal O'Donoghue

    (Department of Economics, National University of Ireland, Galway)

Abstract

Pension systems have recently been under scrutiny because of the expected population ageing threatening its sustainability. This paper’s contribution to the debate is from a political economic perspective as it uses data from a choice experiment to investigate individual preferences for an alternative state pension scheme based around preferences for cost, poverty, retirement age and pension parameters. Answers are used to estimate a life-cycle utility model of preferences towards pensions’ parameters. Results suggest that individuals’ value orientation is an important determinant of their preferences. Respondents’ income determines which degree of redistribution is preferred. However, preferences according to age are in contradiction with what is suggested in theory

Suggested Citation

  • Yosr Abid Fourati & Cathal O'Donoghue, 2009. "Eliciting Individual Preferences for Pension Reform," Working Papers 0150, National University of Ireland Galway, Department of Economics, revised 2009.
    • Handle: RePEc:nig:wpaper:0150
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    File URL: http://www.economics.nuig.ie/resrch/paper.php?pid=157
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    File URL: http://www.economics.nuig.ie/resrch/paper.php?pid=157
    File Function: Revised version, 2009
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    Cited by:

    1. is not listed on IDEAS
    2. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.

    More about this item

    Keywords

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    JEL classification:

    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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