This paper investigates the diversification demand of an agent, who is faced with the alternative to swap aggregate labor income risk into equity exposure, through her individual account in a mandatory pension scheme. The framework for the analysis is a life-cycle model of a borrowing...

This paper investigates some welfare effects of forced saving through a mandatory pension scheme. The framework for the analysis is a life-cycle model of a borrowing constrained individual's consumption and portfolio choice in the presence of uncertain labour income and realistically calibrated...

There is a trend among employers to prefer Defined Contribution instead of Defined Benfit pension plans, since the former transfer all risks associated with investment return, longevity, etc from the employer to the employee. However, Defined Contribution plans also allow the individual to enter...

This paper investigates the diversification demand of an agent, who is faced with the alternative to swap aggregate labour-income risk for equity-exposure, through her individual account in a mandatory-pension scheme. The framework for the analysis is a life-cycle model of a...

This paper investigates some welfare effects of forced saving through a mandatory pension scheme. The framework for the analysis is a life-cycle model of a borrowing constrained individual´s consumption and portfolio choice in the presence of uncertain labour income and realistically calibrated...

There is a trend among institutional investors to split their assets between index-managers and specialists. The specialist mandates are typically delegated to specialist asset managers, who are assumed to generate "alpha", take on large risks and whose remuneration is performance based. In this...