Universal pension scheme and risk-taking
This article examines whether the existence of a universal pension scheme has any effect on a typical individual's willingness to take risks at a young age. The pension system will give the individual who is assumed to live for two periods a fixed amount in the second period regardless of his initial choice between certain and uncertain income patterns. It is found that with a grant in place for everyone after retirement that satisfies the basic need of consumption in any part of life where the typical individual is more risk-averse, he will always accept the risky projects that at least make him indifferent between sure incomes and uncertain profits in the first period.
Year of publication: |
2015
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Authors: | Chen, Yao-Tung ; Lan, Yuh-Ju ; Hsu, Ker-Tah ; Chen, Keng-Shen ; Wang, Yu-Der |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 22.2015, 1, p. 7-11
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Publisher: |
Taylor & Francis Journals |
Saved in:
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