Economic Consequences of Unfunded Vested Pension Benefits / Mark Gersovitz.

Format:

Book

Author/Creator:

Gersovitz, Mark.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0480.

NBER working paper series no. w0480

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1980.

Summary:

This paper examines the relationship between unfunded vested pension liabilities and the market value of a firm's shares. This relationship has important implications for the mechanism by which private pensions influence aggregate savings. Attention is paid to modeling the institutional determinants of this relation implied by ERISA legislation. These considerations require a nonlinear regression model with very special properties which are developed and discussed. Estimation results suggest that ERISA has had an important effect on the relation between unfunded benefits and firm value that previous investigations have neglected.

Notes:

Print version record

May 1980.