Generational Accounting, Solidarity and Pension Losses

Coen N. Teulings () and Casper de Vries
Additional contact information
Coen N. Teulings: SEO, University of Amsterdam

No 03-094/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: The stock market collapse led to political tensions between generations due to the fuzzy definition of the property rights over the pension funds’ wealth. The problem is best resolved by the introduction of generational accounts. Modern consumption and portfolio theory shows that the younger generations should have the higher equity exposure due to their human capital. Stock market losses should be distributed smoothly over lifetime consumption by adjusting both current contributions and future entitlements. We present expressions for the substantial welfare losses involved in various practically relevant deviations from the optimal system.

This discussion paper resulted in a publication in , 2006. (154(1), 63-83.

Keywords: Saving & investment; Financial institutions; Pension funds; Private pensions; Social security and public pensions (search for similar items in EconPapers)
JEL-codes: E2 G2 G23 H55 J32 (search for similar items in EconPapers)
Date: 2003-11-17
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Generational Accounting, Solidarity and Pension Losses (2006)
Working Paper: Generational Accounting, Solidarity and Pension Losses (2004)
Working Paper: Generational Accounting, Solidarity and Pension Losses (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20030094

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