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...

We examine the relationship between managerial myopia and three governance mechanisms: ownership concentration, short-term incentive plans and the market for corporate control. We first examine a number of measures for long-term investments in physical assets and show that the net depreciation...

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...