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Insulation of Pensions from Political Risk

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  • Peter Diamond

Abstract

There are many sources of political risk to public provision of pensions. This paper analyzes legislation to alter the retirement income system. This approach naturally recognizes that some changes in the system are good responses to social risks, while others generate such risks. Thus the discussion is in terms of the effect of institutional structure on the likelihood of alternative legislative actions. Particular attention is paid to the roles of automatic pension adjustment and pension professionals in providing insulation. Briefly touched upon is the tendency of legislation to redistribute as a function of the type of system being created.

Suggested Citation

  • Peter Diamond, 1994. "Insulation of Pensions from Political Risk," NBER Working Papers 4895, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4895
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    Cited by:

    1. Alessandro Bucciol, 2006. "The Roles of Temptation and Social Security in Explaining Individual Behavior," "Marco Fanno" Working Papers 0032, Dipartimento di Scienze Economiche "Marco Fanno".
    2. Ayşe İmrohoroğlu & Selahattin İmrohoroğlu & Douglas H. Joines, 2003. "Time-Inconsistent Preferences and Social Security," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 745-784.
    3. Garon, Jean-Denis, 2016. "The commitment value of funding pensions," Economics Letters, Elsevier, vol. 145(C), pages 11-14.
    4. Steven A. Sass, 2014. "Privatizing Railroad Retirement," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number prr.
    5. Barrientos, Armando, 2002. "Comparing Pension Schemes in Chile, Singapore, Brazil and South Africa," General Discussion Papers 30560, University of Manchester, Institute for Development Policy and Management (IDPM).
    6. Patrick Artus & Florence Legros, 1997. "Vieillissement de la population, pouvoir électoral, système de retraites et croissance," Revue Économique, Programme National Persée, vol. 48(4), pages 899-920.
    7. Ghilarducci, Teresa & Liebana, Patricia Ledesma, 2000. "Unions' Role in Argentine and Chilean Pension Reform," World Development, Elsevier, vol. 28(4), pages 753-762, April.
    8. Alonso-García, J. & Devolder, P., 2016. "Optimal mix between pay-as-you-go and funding for DC pension schemes in an overlapping generations model," Insurance: Mathematics and Economics, Elsevier, vol. 70(C), pages 224-236.

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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