Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We investigate intergenerational risk‐sharing in two‐pillar pension systems with a pay‐as‐you‐go pillar and a funded pillar. The funded pension pillar can be either defined contribution or defined benefit. Only a defined‐benefit scheme with an appropriate investment policy establishes optimal intergenerational risk‐sharing. We show how the pension system affects capital markets in general and the equity premium in particular.