This paper explores portfolio allocation when individuals target the mean and variance of consumption growth. These consumption targets lead to an optimal mix of equity which depends on the equity risk premium, the rate of return on riskless bonds, the desired rate of escalation of consumption...

The global financial crisis has posed profound threats to pension welfare worldwide. This is particularly so in the UK with the closure of private defined benefit plans and the heavy losses experienced by many defined contribution pension plan participants. Meeting these challenges has placed a...

Many countries with generous social insurance are currently forced to cut back or modify their systems. At the same time many developing countries lack social insurance for large segments of the population. Health accounts may offer a way of implementing health insurance that keeps a lid on...

One of the oldest and most contentious debates in welfare economics and social security provision revolves around means testing. This paper reviews the history and issues in the debate about means tested welfare benefits, with particular emphasis on UK experience

In this paper, we have looked at the choice of performance targets using a unique panel database on UK CEO executive option performance targets. Using this data on performance targets along with governance data and financial data for company accounts with year ends from 2001 to 2003, we find...

Using accounting data from just over 100 Italian companies we construct various measures of exposure to severance pay. We then examine how these measures are related to subsequent market measures of risk. We find little relationship between corporate Italian severance pay exposure and either...

The large declines in equity markets observed in the United Kingdom and the United States in 2001-2002 had a significant impact on the retirement funds of many individuals approaching retirement. This decline in markets and savings offers a natural experiment from which we examine how...

This paper considers the extensive literature from the US which has developed spending rules for endowments and foundations, and attempts to consider the impact of applying such rules to European foundations under a range of scenarios. By undertaking a broad-ranging investigation of this nature...

This paper analyzes the effects of tax-deferred accounts (TDAs) in a stochastic life-cycle model. The simulations reveal that conventional savings (CSAs) serve mainly for liquidity and TDAs for retirement and bequests. The tax incentives are generally effective in stimulating new savings for the...