Work detail

Czech pension reform through the lens of behavioral economics

Author: Mgr. Jana Kahounová
Year: 2012 - summer
Leaders: doc. PhDr. Michal Bauer Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 85
Awards and prizes:
Link:
Abstract: The field of behavioral economics can provide original insights into many areas of
economic decision-making. In my thesis I use the point of view of behavioral economics to
assess the current Czech pension reform plan. I study time discounting as the main
determinant of saving behavior and deal with its relationship to the Czech pension reform
architecture. The three fundamental features of the Czech pension reform plan that are
examined are entry into the private funded scheme that is to be introduced by the Czech
pension reform plan, the contribution rate into the private funded scheme and access to
deposits in the private funded scheme. In order to obtain data for my research I conducted
own survey. The results of statistical analysis confirmed the hypotheses of behavioral
economics that people exhibit heterogeneous time discounting which influences their saving
behavior and these characteristics can also determine their preference for the pension reform
features. It implies a possibility for policy-makers to take the behavioral impacts of the
pension reform aspects into consideration when improving its final design.

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