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dc.contributor.authorBucciol, Alessandroen_US
dc.contributor.authorBeetsma, Roelen_US
dc.date.accessioned2009-10-08en_US
dc.date.accessioned2010-05-14T08:19:21Z-
dc.date.available2010-05-14T08:19:21Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/30418-
dc.description.abstractWe study numerically the inter- and intra-generational welfare consequences of alternative pension fund policies in response to unexpected demographic, financial and macro-economic shocks. Our analysis is based on an applied many-generation OLG model describing a small-open economy with heterogeneous agents featuring a two-pillar pension system (with PAYG and funded tiers). We explore two policies to avoid underfunding of the pension funds. One is to always first raise the pension contribution rate (contribution policy), the other is to always first reduce indexation to productivity and price inflation (indexation policy). These policies have different consequences for different generations. Of the existing generations, on average the youngest prefer the indexation policy, while the older generations prefer the con-tribution policy. When expressed in terms of a constant difference in rest-of-life consumption the consequences of switching from one to the other policy are generally non-negligible. They also differ rather widely for the various cohort/income groups. Our stochastic simulations show that pension buffers are highly volatile when the shocks are drawn from realistically modelled multivariate shock processes. Underfunding occurs relatively frequently. Most of the volatility arises from uncertainty about the yield curve (the rate at which pension liabilities are discounted).en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2779en_US
dc.subject.jelH55en_US
dc.subject.jelI38en_US
dc.subject.jelC61en_US
dc.subject.ddc330en_US
dc.subject.keywordfunded social securityen_US
dc.subject.keywordpension fund policyen_US
dc.subject.keywordshocksen_US
dc.subject.keywordfunding ratioen_US
dc.subject.keywordstochastic simulationsen_US
dc.subject.stwPensionsfondsen_US
dc.subject.stwRentenfinanzierungen_US
dc.subject.stwSchocken_US
dc.subject.stwSimulationen_US
dc.subject.stwRentenpolitiken_US
dc.subject.stwPublic Choiceen_US
dc.subject.stwGenerationenbeziehungenen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.titleInter- and intra-generational consequences of pension buffer policy under demographic, financial and economic shocksen_US
dc.typeWorking Paperen_US
dc.identifier.ppn61018217Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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