The Portfolio Effect of Pension Reforms

Renata Bottazzi, Tullio Jappelli () and Mario Padula

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: We estimate the portfolio effect of changes in social security wealth exploiting a decade of Italian pension reforms as a source of exogenous variation. The Italian Survey of Household Income and Wealth records detailed portfolio data and elicits expectations of retirement outcomes, thus allowing us to measure the expected social security wealth and to assess to what extent Italian households perceive the innovations brought about by the reforms. We find that households have responded to the cut in pension benefits mostly by increasing real estate wealth, and that the response is stronger among households that are able to estimate more accurately future social security benefits. We also compute that for the average household consumable wealth increases by 40 percent of the reduction in social security wealth.

Keywords: Pension Reform; Portfolio Choice; Retirement Saving (search for similar items in EconPapers)
JEL-codes: E21 H55 (search for similar items in EconPapers)
Date: 2009-07-10
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Journal of Pension Economics and Finance, 2011, 10(1), 75-97

Downloads: (external link)
http://www.csef.it/WP/wp234.pdf (application/pdf)

Related works:
Working Paper: The Portfolio Effect of Pension Reforms (2009)
Working Paper: The Portfolio Effect of Pension Reforms (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:234

Access Statistics for this paper

More papers in CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Maria Carannante ().