Shifting Perspectives in Pensions

This paper addresses the questions of what is an economically efficient pension system, what are the externalities and what are the risks of the four alternative pension systems: financial defined contribution (FDC), notional or non-financial defined contribution (NDC), financial defined benefit (FDB) and non-financial defined benefit (NDB). A main contribution of the paper is the development of the concept of NDC, itself a new construction in pension economics. An important conclusion is that NDC is neutral in terms of externalities. It manages the risks and eliminates the negative externalities associated with traditional public NDB schemes, and in a manner similar to FDC schemes.

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Year of publication:	2004
Authors:	Góra, Marek ; Palmer, Edward
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Gesetzliche Rentenversicherung \| Umlageverfahren \| Kapitaldeckungsverfahren \| Wirtschaftliche Effizienz \| Externer Effekt \| pensions \| NDC \| FDC \| notional account systems \| financial account systems \| funding \| externalities \| risks \| defined contribution \| government debt

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Series:	IZA Discussion Papers ; 1369
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	476072646 [GVK] hdl:10419/20666 [Handle]
Classification:	D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; H55 - Social Security and Public Pensions ; J26 - Retirement; Retirement Policies ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies ; D8 - Information and Uncertainty ; G23 - Pension Funds; Other Private Financial Institutions ; D6 - Welfare Economics
Source:	EconStor