Arbeitspapier

Pension benefit insurance and pension plan portfolio choice

Pension benefit guarantee policies have been introduced in several countries to protect private pension plan members from the loss of income that would occur if a plan was underfunded when the sponsoring firm terminates a plan. Most of these public insurance schemes face financial difficulty and consequently policy reforms are being discussed or implemented. Economic theory suggests that such schemes will face moral hazard and adverse selection problems. In this note we test a specific theoretical prediction: insured plans will invest more heavily in risky assets. Our test exploits differences in insurance arrangements across Canadian jurisdictions. We find that insured plans invest about 5 percent more in equities than do similar plans without benefit guarantees.

Sprache
Englisch

Erschienen in
Series: QSEP Research Report ; No. 428

Klassifikation
Wirtschaft
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Portfolio Choice; Investment Decisions
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Thema
pensions
benefit guarantee
moral hazard
Pensionskasse
Private Rentenversicherung
Garantie
Portfolio-Management
Moral Hazard
Kanada

Ereignis
Geistige Schöpfung
(wer)
Crossley, Thomas
Jametti, Mario
Ereignis
Veröffentlichung
(wer)
McMaster University, Research Institute for Quantitative Studies in Economics and Population (QSEP)
(wo)
Hamilton (Ontario)
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Crossley, Thomas
  • Jametti, Mario
  • McMaster University, Research Institute for Quantitative Studies in Economics and Population (QSEP)

Entstanden

  • 2008

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