Credit crisis and Dutch pension funds: Who bears the shock?

This paper establishes the impact of the credit crisis on the wealth and consumption of different generations according to current pension rules. Second, it assesses this distribution by comparing it to theoretical models of optimal risk sharing, in particular the seminal model of Merton (1969) and Samuelson (1969), and its extensions to include human capital (Bodie et al. 1992) and intergenerational risk sharing (Gordon and Varian 1988).