The Economics of Local Government Pensions and Pension Funding

Mumy, Gene E.

doi:10.1086/260685

Cited by 29 publications

(13 citation statements)

References 5 publications

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“…Most of the relevant tax provisions relating to retirement systems can be found in sections 401-404 of the Internal Revenue Code. For a brief discussion of the tax provisions, see Mumy (1978).…”

Section: A Comparison Of Theoretical and Empirical Resultsmentioning

confidence: 99%

“…As in the case of Oakland (1978), the results in this section are obtained with a more detailed specification of the model in Mumy (1978).…”

Section: A Comparison Of Theoretical and Empirical Resultsmentioning

confidence: 99%

“…Ohio State University -Recent theoretical and empirical work on local govern-• ment retirement systems (Mumy, 1978;Ehrenberg, 1978) generates the suspicion that most of these retirement systems contain a counterproductive element. The counterproductive element is that employees are required to make contributions to the retirement system out of wages.…”

Section: Gene E Mumymentioning

confidence: 99%

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Employee Contributions to Local Government Retirement Systems: A Theoretical Analysis of Effects

Mumy

1980

Public Finance Quarterly

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assessing the extent 10 which required employee contributions 10 a local government retirement system necessitate increased levels of employee compensation. It isfound that increased compensation is required ifthe before-tax yield on retirement system assets is less than the before-tax yield on alternative assets that would be held by employees. It is also found that such increased levels of compensation generally take the form of increased pensions rather than increased wages. These theoretical results are compared with some recent empirical results obtained by Ehrenberg.

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Section: A Comparison Of Theoretical and Empirical Resultsmentioning

confidence: 99%

“…As in the case of Oakland (1978), the results in this section are obtained with a more detailed specification of the model in Mumy (1978).…”

Section: A Comparison Of Theoretical and Empirical Resultsmentioning

confidence: 99%

Section: Gene E Mumymentioning

confidence: 99%

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Employee Contributions to Local Government Retirement Systems: A Theoretical Analysis of Effects

Mumy

1980

Public Finance Quarterly

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“…The recent literature on local pensions includes Bohn (2011), Albrecht (2012),Bagchi (2013), andGlaeser and Ponzetto (2014). Earlier contributions to the literature on pension funding includeInman (1982),Mumy (1978), andEpple and Schipper (1981).7 In their OLG model Ricardian equivalence does not hold. However, young agents have a disciplining…”

mentioning

confidence: 99%

The Political Economy of Underfunded Municipal Pension Plans

Brinkman¹,

Coen‐Pirani²,

Sieg³

2016

Working Paper (Federal Reserve Bank of Philadelphia)

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This paper analyzes the determinants of underfunding of local government's pension funds using a politico-economic overlapping generations model. We show that a binding downpayment constraint in the housing market dampens capitalization of future taxes into current land prices. Thus, a local government's pension funding policy matters for land prices and the utility of young households. Underfunding arises in equilibrium if the pension funding policy is set by the old generation. Young households instead favor a policy of full funding. Empirical results based on cross-city comparisons in the magnitude of unfunded liabilities are consistent with the predictions of the model.

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“…Welfare and labor economics theories, on the other hand, offer competing views about the implications of underfunding. Mumy (1978), for example, argued that public welfare might be maximized by underfunding pension plans. Epple and Schipper (1981) went even further and developed a constrained optimization model which describes how unfunded pension liability decreases local property values through anticipated future tax increases and the 'dead weight' consumption loss associated with taxation.…”

mentioning

confidence: 99%