Optimal funding of state public employee pension systems

This thesis focuses on developing an appropriate target for the funding level of public pension plans. Initially, a two-period model is developed that incorporates the relevant factors in a simple model, examines the comparative statics, and compares the results with actual funding levels. The results indicate that although the funding levels in different states vary widely, there is no significant relationship between actual funding levels and historical growth in the state's tax base. Incorporating the stochastic nature of the variables in a lattice model indicated that the greater the uncertainty about interest rates, the lower the optimal funding level and the greater uncertainty about changes in the tax base, the higher the optimal funding level.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Finance

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2011

Author dc:creator

• Oh, Pyungsuk

Contributors dc:contributor

• D'Arcy, Stephen P.

• Economics, Finance
• Economics, Labor
• Political Science, Public Administration

Statement dc:rights

• Copyright 1995 Oh, Pyungsuk

Language dc:language

eng

Identifier

AAI9543688
(UMI)AAI9543688

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/23213