The Life-Cycle Effects of Pension Reforms: A Structural Approach

Claudio Daminato and Mario Padula
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Claudio Daminato: Department of Management, Technology and Economics, ETH Zurich

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: To assess the life-cycle welfare effects of pension reforms, we provide a dynamic stochastic model of saving, portfolio choice and retirement with a pension system that operates according to the notional defined contribution principle. Relying on the exogenous variation from a sequence of Italian pension reforms, we identify and estimate the model, which is then used to draw implications of alternative pension policies. Our results also shed further light on the mechanisms behind the offset between social security and private wealth and show the importance of labor supply at retirement as an insurance mechanism against shocks to pension wealth.

Keywords: Pension reforms; Life-Cycle; Savings; Portfolio Choice; Retirement. (search for similar items in EconPapers)
JEL-codes: D15 E21 H31 H55 J26 (search for similar items in EconPapers)
Date: 2020-10-23
New Economics Papers: this item is included in nep-age, nep-dge, nep-eec, nep-ias, nep-lma, nep-mac and nep-pub
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Life-Cycle Effects of Pension Reforms: A Structural Approach (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:585

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