Money is the prime incentive considered in economic models. However, recent evidence indicates that people are also greatly concerned about their social rankings. Is this solely because rank brings tangible benefits, or because in addition people have an inherent preference for high rank? This...

By using their financial reserves efficiently, pension funds can smooth shocks on their asset returns, and can thus facilitate intergenerational risk-sharing. In addition to the primary benefit of improved time-diversification, this form of risk allocation affords the additional benefit of...