Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2003-11-17 Number: 03-094/3 Author-Name: Coen N. Teulings Author-Email: email@example.com Author-Workplace-Name: SEO, University of Amsterdam Author-Name: Casper G. de Vries Author-Email: firstname.lastname@example.org Author-Workplace-Name: Erasmus University Rotterdam Title: Generational Accounting, Solidarity and Pension Losses Abstract: The stock market collapse led to political tensions between generations due to the fuzzy definition of the property rights over the pension fundsí 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. Classification-JEL: E2; G2; G23; J32; H55 Keywords: Saving & investment; Financial institutions; Pension funds; Private pensions; Social security and public pensions File-Url: http://papers.tinbergen.nl/03094.pdf File-Format: application/pdf File-Size: 242822 bytes Handle: RePEc:tin:wpaper:20030094