| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5076365 | Insurance: Mathematics and Economics | 2016 | 10 Pages |
Abstract
The aim of this paper is to design an automatic balancing mechanism to restore the sustainability of a pay-as-you-go (PAYG) pension system based on changes in its main variables, such as the contribution rate, normal retirement age and indexation of pensions. Using nonlinear optimisation, this mechanism, identifies and applies an optimal path of these variables to a PAYG system in the long run and absorbs fluctuations in longevity, fertility rates, salary growth or any other events in a pension system.
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Humberto GodÃnez-Olivares, MarÃa del Carmen Boado-Penas, Steven Haberman,