Plausibly Exogenous [1245] - Corporate Pensions (06/30/2023)
LHS Variable
Funding pressure and risk-taking behavior of defined-benefit US corporate pension plans
RHS Variable
Interest rates
Source of Exogenous Variation
A transportation bill, the Moving Ahead for Progress in the 21st Century Act (MAP 21), which caused a large exogenous improvement in the funding status of US corporate DB plans: MAP-21 required a change in the discount rates that were used to compute the minimum funding requirements of US corporate DB plans
- Ioannidou, Pinto, and Wang (2023), “Corporate Pension Risk-Taking in a Low Interest Rate Environment”