How Should Public Pension Plans Invest

By Deborah Lucas, Stephen P. Zeldes. 2009

112 citations recorded by the source corpus.

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Pension Fund Asset Allocation and Liability Discount Rates: Camouflage and Reckless Risk Taking by U.S. Public Plans? (2012, unknown): “As a result, Sundaresan and Zapatero (1997) and Lucas and Zeldes (2009) argue that the proportion of pension fund assets invested in risky assets should be positively related to the percentage of active participants, because pension benefits are tied to salaries, which are positively correlated…”
Public Pension Promises: How Big are They and What are They Worth? (2011, background): “But if future taxation to meet pension promises has nonlinear distortionary costs, then investing public pensions in risky assets with high expected returns and high volatility may impose a large expected cost of distortionary taxation on future generations, as shown by Lucas and Zeldes (2009).”