IDEAS home Printed from https://ideas.repec.org/p/nig/wpaper/0150.html
   My bibliography  Save this paper

Eliciting Individual Preferences for Pension Reform

Author

Listed:
  • Yosr Abid Fourati
  • Cathal O'Donoghue

    (Department of Economics, National University of Ireland, Galway)

Abstract

Pension systems have recently been under scrutiny because of the expected population ageing threatening its sustainability. This paper’s contribution to the debate is from a political economic perspective as it uses data from a choice experiment to investigate individual preferences for an alternative state pension scheme based around preferences for cost, poverty, retirement age and pension parameters. Answers are used to estimate a life-cycle utility model of preferences towards pensions’ parameters. Results suggest that individuals’ value orientation is an important determinant of their preferences. Respondents’ income determines which degree of redistribution is preferred. However, preferences according to age are in contradiction with what is suggested in theory

Suggested Citation

  • Yosr Abid Fourati & Cathal O'Donoghue, 2009. "Eliciting Individual Preferences for Pension Reform," Working Papers 0150, National University of Ireland Galway, Department of Economics, revised 2009.
    • Handle: RePEc:nig:wpaper:0150
    as

    Download full text from publisher

    File URL: http://www.economics.nuig.ie/resrch/paper.php?pid=157
    File Function: First version, 2009
    Download Restriction: no
    File URL: http://www.economics.nuig.ie/resrch/paper.php?pid=157
    File Function: Revised version, 2009
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Blamey, Russell K. & Gordon, Jenny & Chapman, Ross, 1999. "Choice modelling: assessing the environmental values of water supply options," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(3), pages 1-21, September.
    2. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    3. repec:bla:scandj:v:102:y:2000:i:3:p:523-45 is not listed on IDEAS
    4. Liam Delaney & Francis O'Toole, 2008. "Preferences for specific social welfare expenditures in Ireland," Applied Economics Letters, Taylor & Francis Journals, vol. 15(12), pages 985-989.
    5. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    6. Hughes, Gerard & Whelan, Brendan J., 1996. "Occupational and Personal Pension Coverage 1995," Research Series, Economic and Social Research Institute (ESRI), number BMI110.
    7. Samuel Bowles & Herbert Gintis, 2000. "Reciprocity, Self-Interest and the Welfare State," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 33-53.
    8. Guido Tabellini, 2000. "A Positive Theory of Social Security," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 523-545, September.
    9. Mark Morrison & Jeff Bennett & Russell Blamey & Jordan Louviere, 2002. "Choice Modeling and Tests of Benefit Transfer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 161-170.
    10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    11. Hall, Jane & Viney, Rosalie & Haas, Marion & Louviere, Jordan, 2004. "Using stated preference discrete choice modeling to evaluate health care programs," Journal of Business Research, Elsevier, vol. 57(9), pages 1026-1032, September.
    12. van der Heijden, Eline C. M. & Nelissen, Jan H. M. & Verbon, Harrie A. A., 1997. "Altruism and fairness in a public pension system," Journal of Economic Behavior & Organization, Elsevier, vol. 32(4), pages 505-518, April.
    13. Leslie McCall & Lane Kenworthy, 2007. "Inequality, Public Opinion, and Redistribution," LIS Working papers 459, LIS Cross-National Data Center in Luxembourg.
    14. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    15. Nick Hanley & Robert Wright & Gary Koop, 2002. "Modelling Recreation Demand Using Choice Experiments: Climbing in Scotland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(3), pages 449-466, July.
    16. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    17. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    18. Tito Boeri & Axel Börsch-Supan & Guido Tabellini, 2001. "Would you like to shrink the welfare state? A survey of European citizens," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 16(32), pages 08-50.
    19. Browning, Edgar K, 1975. "Why the Social Insurance Budget Is Too Large in a Democracy," Economic Inquiry, Western Economic Association International, vol. 13(3), pages 373-388, September.
    20. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    21. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    22. Massimiliano Mazzanti, 2003. "Discrete choice models and valuation experiments," Journal of Economic Studies, Emerald Group Publishing, vol. 30(6), pages 584-604, October.
    23. Schwarze, Johannes & Harpfer, Marco, 2007. "Are people inequality averse, and do they prefer redistribution by the state?: Evidence from German longitudinal data on life satisfaction," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 233-249, April.
    24. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
    25. van Groezen, Bas & Kiiver, Hannah & Unger, Brigitte, 2009. "Explaining Europeans' preferences for pension provision," European Journal of Political Economy, Elsevier, vol. 25(2), pages 237-246, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pfarr, Christian, 2012. "Meltzer-Richard and social mobility hypothesis: revisiting the income-redistribution nexus using German choice data," MPRA Paper 43325, University Library of Munich, Germany.
    2. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.
    3. Julia Martin-Ortega & Giacomo Giannoccaro & Julio Berbel, 2011. "Environmental and Resource Costs Under Water Scarcity Conditions: An Estimation in the Context of the European Water Framework Directive," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1615-1633, April.
    4. Mulatu, Dawit W. & van der Veen, Anne & van Oel, Pieter R., 2014. "Farm households' preferences for collective and individual actions to improve water-related ecosystem services: The Lake Naivasha basin, Kenya," Ecosystem Services, Elsevier, vol. 7(C), pages 22-33.
    5. Carole Ropars-Collet & Philippe Goffe & Qods Lefnatsa, 2021. "Does catch-and-release increase the recreational value of rivers? The case of salmon fishing," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(4), pages 393-424, December.
    6. Stine Broch & Suzanne Vedel, 2012. "Using Choice Experiments to Investigate the Policy Relevance of Heterogeneity in Farmer Agri-Environmental Contract Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(4), pages 561-581, April.
    7. Christian Pfarr & Andreas Schmid & Morten Raun Mørkbak, 2018. "Modelling Heterogeneous Preferences for Income Redistribution–An Application of Continuous and Discrete Distributions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 270-294, June.
    8. Tadesse, Tewodros & Berhane, Tsegay & Mulatu, Dawit W. & Rannestad, Meley Mekonen, 2021. "Willingness to accept compensation for afromontane forest ecosystems conservation," Land Use Policy, Elsevier, vol. 105(C).
    9. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    10. Helen Scarborough & Jeff Bennett, 2012. "Cost–Benefit Analysis and Distributional Preferences," Books, Edward Elgar Publishing, number 14376.
    11. Tadesse, Tewodros & Teklay, Gebreegziabher & Mulatu, Dawit W. & Rannestad, Meley Mekonen & Meresa, Tigabu Molla & Woldelibanos, Dawit, 2022. "Forest benefits and willingness to pay for sustainable forest management," Forest Policy and Economics, Elsevier, vol. 138(C).
    12. Pfarr, Christian & Schmid, Andreas & Mørkbak, Morten Raun, 2015. "Latent characteristics and preferences for income redistribution," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113001, Verein für Socialpolitik / German Economic Association.
    13. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.
    14. Hoyos Ramos, David, 2010. "Using discrete choice experiments for environmental valuation," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    15. Ropars‑Collet, Carole & Le Goffe, Philippe & Lefnatsa, Qods, 2021. "Does catch‑and‑release increase the recreational value of rivers? The case of salmon fishing," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 102(4), September.
    16. Kennedy Otieno, Pambo, 2013. "Analysis of Consumer Awareness and Preferences for Fortified Sugar in Kenya," Research Theses 243455, Collaborative Masters Program in Agricultural and Applied Economics.
    17. Pfarr, Christian & Schmid, Andreas & Mørkbak, Morten Raun, 2014. "Identifying latent interest-groups: An analysis of heterogeneous preferences for income-redistribution," MPRA Paper 58823, University Library of Munich, Germany.
    18. Filyushkina, Anna & Agimass, Fitalew & Lundhede, Thomas & Strange, Niels & Jacobsen, Jette Bredahl, 2017. "Preferences for variation in forest characteristics: Does diversity between stands matter?," Ecological Economics, Elsevier, vol. 140(C), pages 22-29.
    19. Illichmann, R. & Abdulai, A., 2014. "Analysis of Consumer Preferences and Wilingness-To-Pay for Organic Food Products in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.

    More about this item

    Keywords

    Population ageing; pension system reform; redistribution; stated preferences Algorithmic Trading; MACD;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nig:wpaper:0150. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Srinivas Raghavendra (email available below). General contact details of provider: https://edirc.repec.org/data/deucgie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.