Frederik Bjørn Christensen
Ph.D. candidate, Copenhagen Business School
My research interests are macroeconomics, public policy, demography, welfare, and inequality. My work combines computational models and micro data to analyze pertinent policy issues.
Ph.D. in Economics, since 2019
Copenhagen Business School
M.Sc., Economics and Business Administration, 2017-2019
B.A., Economics and Business Administration, 2013-2016
Abstract: We study retirement reforms that ensure sustainable public finances in the face of population aging. We build a structural life-cycle model with a pension scheme that includes a public pay-as-you-go pillar and a mandatory fully-funded pillar. The two pillars interact through a means-testing mechanism. The higher the fully-funded benefit, the lower the public pay-as-you-go benefit. The interaction allows us to assess a reform in which increases in fully-funded contributions and benefits reduce public pension benefits through means testing. We compare this reform to three alternatives: Increasing the retirement age, cutting public benefits, and increasing taxes to finance growing public pension expenditures. We estimate the model to Danish micro data and find that expanding fully-funded pensions to indirectly lower public pensions yields the highest welfare. Among the remaining reforms, we show that directly lowering public benefits outperforms hiking taxes and increasing the retirement age.