beneficiary: a defined benefit (DB) and a defined contribution (DC) plan. While salary risk is the main common risk factor in DB … price risk. We model these tradeoffs explicitly in this paper and compare these two plans in a utility-based framework. Our … of risk aversion, which is inconsistent with the existing literature. …

This paper considers a world in which pension funds may default, the cost of the associated risk of default is not …

We use a modified corporate risk management framework (e.g., Froot and Stein, 1998) to understand how inefficient risk … declining popularity. For reasonable parameter values, our model matches key empirical patterns including pension's risk … allocation and the relations among pension investment risk, corporate bankruptcy probability, and pension funding. Further, we …

Failure to correct for pension risk leads to upward-biased discount rate estimates in firms with pension risk exposure …. The result is a negative and economically significant relation between pension risk and corporate investment. The effect …