Article ID Journal Published Year Pages File Type
5060475 Economics Letters 2012 5 Pages PDF
Abstract
► Preference for relative consumption adds two contrasting effects. ► PAYG is more attractive because it insures against the risk of being left behind. ► PAYG is potentially less effective in hedging financial risks. ► Optimal PAYG size can be greater or smaller than under standard preferences.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
The desirability of pay-as-you-go pensions when relative consumption matters and returns are stochastic
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