Data on Public Economics Described by Researchers at NBER (Why do individuals choose defined contribution plans? Evidence from participants in a large public plan)
Our news editors obtained a quote from the research from NBER, "Using a survey of participants, we find that the ability to control for beliefs, preferences, and other variables not easily obtainable from administrative or standard household surveys increases the explanatory power over seven-fold. Among the important factors in the DB/DC pension choice are respondent attitudes about risk/return tradeoffs, financial literacy, return expectations, and political risk. We also find that individuals make sensible choices based on what they believe to be true about the plans, but that these beliefs about plan parameters are often wrong, thus leading to possibly sub-optimal decisions."
According to the news editors, the research concluded: "Finally, we provide evidence that individuals' preferences over plan attributes (e.g., the degree of control provided) are even more important determinants of the DB/DC decision than expected outcomes (e.g., the relative generosity of the plans)."
For more information on this research see: Why do individuals choose defined contribution plans? Evidence from participants in a large public plan.
The news editors report that additional information may be obtained by contacting
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