Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75591
Authors: 
Miles, David K.
Year of Publication: 
2000
Series/Report no.: 
CESifo Working Paper 239
Abstract: 
This paper uses stochastic simulations on calibrated models to assess the optimal degree of reliance on fun ded pensions and on a particular type of unfunded (PAYG) pension. Surprisingly little is known about the optimal split between funded and unfunded systems when there are sources of uninsurable risk that are allocated in different ways by different types of pension system. This paper calculates the expected welfare of agents in differenteconomies where in the steady state the importance of PAYG pensions differs. We estimate how the optimal level of unfunded, state pensions depends on rate of return and income risks and also upon the actuarial fairness of annuity contracts.
Subjects: 
Pensions
annuities
risk-sharing
JEL: 
D91
G22
H55
J14
Document Type: 
Working Paper

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