The intergenerational welfare effect of the design of solidarity buffers

This thesis investigates the intergenerational welfare effect of the design of solidarity buffers as proposed in the new pension agreement in the Netherlands. Using the assumptions of the seminal work of Merton (1969), where participants invest in a Black-Scholes market and participants derive utility from the CRRA-utility function, we created four different models with different rules to fill and distribute the solidarity buffer.

(This thesis is not available in full due to confidentiality.)