Over the last two decades, twenty-two states have moved away from traditional defined benefit (DB) pension systems and toward pension plan structures like the defined contribution (DC) plans now prevalent in the private sector. Others are considering such a reform as it is seen as a means of limiting future pension funding risk. It is important to…

Our goal in this paper is to better understand public pension funding dynamics with a focus on sustainability and intergenerational equity. We examine the steady-state properties of deterministic models and simulations of stochastic models to illuminate the implications of recently proposed policies to alleviate current funding pressures. We close…

We explore how teachers unions affect education production by comparing outcomes between districts allocating new tax revenue amidst collective bargaining negotiations and districts allocating tax revenue well before. Districts facing union pressure increase teacher salaries and benefits, spend down reserves, and experience no student achievement…