Optimal mix of funded and unfunded pension systems: The case of Luxembourg

Reference : Optimal mix of funded and unfunded pension systems: The case of Luxembourg


	Document type :	Scientific journals : Article
	Discipline(s) :	Business & economic sciences : Finance
	To cite this reference:	http://hdl.handle.net/10993/4749

Title :	Optimal mix of funded and unfunded pension systems: The case of Luxembourg
Language :	English
Author, co-author :	Guigou, Jean-Daniel [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Luxembourg School of Finance (LSF) >]
	Lovat, Bruno [Université de Lorraine]
	Schiltz, Jang [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Luxembourg School of Finance (LSF) >]
Publication date :	2012
Journal title :	Pensions
Publisher :	Palgrave Macmillan Ltd.
Volume :	17
Issue/season :	4
Pages :	208-222
Peer reviewed :	Yes (verified by ORBi^lu)
Audience :	International
ISSN :	1478-5315
Keywords :	[en] pension systems ; pay-as-you-go ; semiparametric mixture model ; salary trajectories
Abstract :	[en] Financing of the Luxembourg pension system is based on a pay-as-you-go (PAYG) system and hence on an intergenerational contract. As is the case for most other European countries, this system will be exposed to the effects of demographic ageing over the coming decades. The aim of this article is to develop a model that allows evaluating the effi ciency of a diversifi ed pension system fi nanced partly by a PAYG scheme and partly by capitalization. The efficiency is measured by the long-term sustainability of the system. We compare the sustainability of our model with the one of a pure PAYG system.
Permalink :	http://hdl.handle.net/10993/4749

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