Modelling Development of Voluntary Pension Fund Using Mathematical Model of Approximation with Lagrange Interpolation Polynomials

Radojković Ivan (), Ranđelović Branislav () and Ilić Ivana ()
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Radojković Ivan: “Dunav”, voluntary pension fund management company, Serbia
Ranđelović Branislav: University of Niš, the Faculty of Electronic Engineering, Serbia
Ilić Ivana: University of Niš, the Faculty of Medicine, Serbia

Economic Themes, 2021, vol. 59, issue 2, 243-257

Abstract: Corporate social responsibility (CSR), as a concept that tackles economic, The introduction of private pension funds is the essence of the reform of the pension system in Serbia. Private pension funds in Serbia are based on voluntary benefits. Thus, the functioning of the pension system takes place in three interconnected processes: payments to a voluntary pension fund, investment of free funds, and ultimately programmed payments – pensions. The stability in the voluntary pension funds and the predictability of payments allow the quality of investment portfolio to be formed and achieve a long-term yield of investment. In this paper, we implement a well-known approximation method of Lagrange polynomial interpolation. We use it in order to find appropriate mathematical model for prediction of the number of fund members and the average salary in Serbia. This calculation is based on data (average salaries and fund member) from the last five years, i.e. from the period 2015-2019. We calculated the exact mathematical formula, then we compared the results and predictions obtained with that formula and with the formula from one of our previous works. In keeping with that, the appropriate conclusions were given..

Keywords: pension system; voluntary pension funds; mathematical model; Lagrange interpolation. (search for similar items in EconPapers)
JEL-codes: C38 G11 G23 J32 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecothe:v:59:y:2021:i:2:p:243-257:n:2

DOI: 10.2478/ethemes-2021-0014

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