Comparison between Charges on Flow and Charges on Balance in Individual-Account Pension Systems

In this present article, we develop a discrete-time methodology to comparefront-end load and balance fees in the accumulation phase of a definedcontributionpension fund under a system of individual accounts. Using thismethodology, we study the effect of risk aversion and other relevant variables int...

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Detalles Bibliográficos
Autores principales: Chávez-Bedoya, Luis, Ramírez Rondán, Nelson
Formato: Artículo publishedVersion
Lenguaje:Español
Inglés
Publicado: Universidad del Pacífico 2016
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Acceso en línea:http://revistas.up.edu.pe/index.php/apuntes/article/view/752
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=pe/pe-014&d=article752oai
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Sumario:In this present article, we develop a discrete-time methodology to comparefront-end load and balance fees in the accumulation phase of a definedcontributionpension fund under a system of individual accounts. Using thismethodology, we study the effect of risk aversion and other relevant variables inthe performance and suitability of the aforementioned types of fees. Finally, wecarry out a practical application and show the results for the Peruvian PrivatePension System, including indifference values between fees and certaintyequivalent ratios.