Blake, David (2009): NDC v FDC: Pros, cons and replication.
Download (139kB) | Preview
This paper examines the advantages and disadvantages of non-financial defined contribution (NDC) pension plans relative to financial defined contribution (FDC) pension plans. It also shows how an NDC outcome can be replicated in a FDC framework.
|Item Type:||MPRA Paper|
|Original Title:||NDC v FDC: Pros, cons and replication|
|Keywords:||Non-financial defined contribution; Financial defined contribution|
|Subjects:||J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly ; Economics of the Handicapped ; Non-Labor Market Discrimination
J - Labor and Demographic Economics > J1 - Demographic Economics > J11 - Demographic Trends, Macroeconomic Effects, and Forecasts
|Depositing User:||David Blake|
|Date Deposited:||10 Nov 2011 15:33|
|Last Modified:||04 Feb 2016 20:07|
Aaron, H. J. (1966) The social insurance paradox, Canadian Journal of Economics and Political Science, 32, 371-374.
Ando, A. and Modigliani, F. (1957) Tests of the life cycle hypothesis of saving: Comments and suggestions, Oxford Institute of Statistics Bulletin, 19, 99-124.
Annual Abstract of Statistics, Office for National Statistics (www.statistics.gov.uk/statbase/product.asp?vlnk=94, accessed 13 September 2011).
Blake, D. (2000) Does it matter what type of pension scheme you have?, Economic Journal, 110, F46-F81.
Blake, D., Boardman, T., and Cairns, A. (2010) Sharing longevity risk: Why Governments should issue longevity bonds, Pensions Institute Working Paper PI-1002 (pensions-institute.org/workingpapers/wp1002.pdf, accessed 13 September 2011).
Blake, D., and Burrows, W. (2001) Survivor bonds: Helping to hedge mortality risk, Journal of Risk and Insurance, 68, 339-348.
Bodie, Z. (1990) Pensions as retirement income insurance, Journal of Economic Literature, 28, 28-49.
Cairns, A., Blake, D., and Dowd, K. (2006) A two-factor model for stochastic mortality with parameter uncertainty: Theory and calibration, Journal of Risk and Insurance, 73, 687-718.
Coughlan, G.D., Khalaf-Allah, M., Ye Y., Kumar, S., Cairns, A, Blake, D., and Dowd K. (2011) Longevity hedging 101: A framework for longevity basis risk analysis and hedge effectiveness, North American Actuarial Journal, 15, 150-176.
Feinstein, C. H. (1972) National Income, Expenditure and Output of the United Kingdom: 1855–1965, Cambridge University Press, Cambridge.
Modigliani, F. and Ando, A. (1963) The life cycle hypothesis of saving: Aggregated implications and tests, American Economic Review, 53, 55–84.
Palmer, E. (2008) The Market for Retirement Products in Sweden, The World Bank, Washington DC.
Palmer, E. (2011) Generic NDC: Equilibrium, valuation and risk sharing with and without NDC bonds, Department of Economics Working Paper 2011:3, Uppsala University.
Valdés-Prieto, S. (2000) The financial stability of notional account pensions, _Scandinavian Journal of Economics, 102(3), 395-417.
Valdés-Prieto, S. (2004) Response to Breyer, Scandinavian Journal of Economics, 106(2), 389-390.