Analysis to the Chilean Pension Fund System, Comparing Stochastic Technical Frontier and Envelop Technical Frontier Methodologies

Claudina Rubilar-Maturana, Cesar Venegas-Pineda, Ana Maria Vallina-Hernandez, Hanns de la Fuente-Mella, Rodrigo Fuentes-Ortiz

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Pension funds has become progressively important because of longer life expectation and greater uncertainty in crisis/ pandemic times. The Chilean pension fund has some remarkable characteristic. However, it has been strongly criticized by the low pensions that provide to retired workers. This paper aims to analyze the efficiency of the organizations that manage pension funds (AFPs), specifically during disrupted times, such as 2008 financial crisis. The methodology applied is a stochastic frontier model and compare its results with previous studies that utilized the alternative method of the envelope technological frontier, even though the period under study is not the same. The contribution is to answer how the crisis impacted in AFPs` outcomes using the stochastic method and the differences between stochastic and absolute methods findings. AFPs increase efficiency but did not impact retired workers. Nonetheless results about economies of scale differs. Further studies focus on workers return are need it.

Original languageEnglish
Title of host publicationAdvances in Human Factors, Business Management and Leadership - Proceedings of the AHFE 2021 Virtual Conferences on Human Factors, Business Management and Society, and Human Factors in Management and Leadership, 2021
EditorsJussi Ilari Kantola, Salman Nazir, Vesa Salminen
PublisherSpringer Science and Business Media Deutschland GmbH
Pages141-148
Number of pages8
ISBN (Print)9783030808754
DOIs
StatePublished - 2021
EventAHFE Conferences on Human Factors, Business Management and Society, and Human Factors in Management and Leadership, 2021 - Virtual, Online
Duration: 25 Jul 202129 Jul 2021

Publication series

NameLecture Notes in Networks and Systems
Volume267
ISSN (Print)2367-3370
ISSN (Electronic)2367-3389

Conference

ConferenceAHFE Conferences on Human Factors, Business Management and Society, and Human Factors in Management and Leadership, 2021
CityVirtual, Online
Period25/07/2129/07/21

Keywords

  • AFPs in Chile
  • Chilean pension funds
  • Economic crisis
  • Enveloped efficiency frontier
  • Pension funds
  • Stochastic efficiency frontier

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