This article reexamines an old debate over the optimality of market allocations in a symmetric mean-variance world, with production nonconvexities, imperfectly correlated outputs, and free entry. We show that Walrasian equilibrium does not exist: that non-Walrasian equilibrium under price-taking...

This article examines the pattern of incentives for work versus retirement in six state teacher pension systems. We do this by examining the annual accrual of pension wealth from an additional year of work over a teacher's career. Accrual of wealth is highly nonlinear and heavily loaded at...

The authors analyze the Arkansas teacher pension plan and empirically gauge the behavioral response to incentives embedded in that plan and to possible reforms. The pattern of pension wealth accrual creates sharp incentives to work until eligible for early or normal retirement, often in one's...