[en] Financing of the Luxembourg pension system is based on a pay-as-you-go (PAYG) system
<br />and hence on an inter-generational contract. As is the case for most other European
<br />countries, this system will be exposed to the effects of demographic ageing over the coming
<br />decades.
<br />The aim of this paper is to develop a model that allows to evaluate the efficiency of a
<br />diversified pension system financed partly by a pay-as-you-go scheme and partly by
<br />capitalisation. The efficiency is measured by the long term sustainability of the system. We
<br />compare the sustainability of our model to the one of a pure pay-as-you-go system.
Disciplines :
Finance
Author, co-author :
Guigou, Jean-Daniel ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Luxembourg School of Finance (LSF)
Lovat, Bruno
Schiltz, Jang ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Luxembourg School of Finance (LSF)
Language :
English
Title :
Optimal mix of funded and unfunded pension systems: the case of Luxembourg
