Political risk of social security: the case of the indexation of benefits in the Czech Republic

Abstract

We contribute to the literature on the political risk of social security by extending Feldstein and Ranguelova?s methodology for measuring risk in funded pension system to a pay-as-you-go system. We use the methodology to assess the risk over indexation of benefits in the Czech Republic during the 1990?s and early 2000?s.

Keywords

• social security
• political risk
• pension reform