European Pension Systems: A Simulation Analysis

Simulation Analysis of the Decision to Annuitize Pension Balances∗

Prior studies of life annuities that use classical dynamic programming methods to solve for annuity decisions find large gains from annuitization. The fact that few people actually buy annuities leads to an “annuity puzzle.” An alternative method of analysis, which uses concepts from approximate dynamic programming and samples of life histories from a pension simulation model, is shown to produ...

Old age pension systems: A theoretical evaluation

The paper evaluates the theoretical literature on public pension schemes. First, the terms pay-as-you-go and capital reserve are made precise. These two systems are then compared, followed by a consideration of their efficiency properties. Thereafter conversion policies are discussed. JEL-Classification: H21, H55

Dynamic Simulation of Pension System Development Processes

The article considers the structural and dynamic aspects of the pension system development processes and information and analytical support of government decision making in the pension sphere using a set of simulation models. The set is developed using system dynamics methods and agent-based modeling.

Pension Systems and Aggregate Shocks

Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W First Quarter 2003 T o some analysts the prospective imbalances between pay-as-you-go pension system benefits and the tax base present a great economic challenge in the decades to come.1 It is currently estimated that the U.S. Social Security Trust Funds will run out of money in 2041, after which either benefit cuts or major tax hikes ...

Actuarial-based Public Pension Systems