Political Economy of Public Pensions

Public pensions in the United States face an impending funding crisis

In the wake of the financial crisis and the COVID-19 recession, many cities and states will struggle to meet these growing obligations without major cuts in government services, reneging on pension promises, or raising taxes.

Analysis of the pension crisis

This Element examines the development of the pension crisis through the lens of political economy. We analyze the knowledge and incentive problems inherent in the institutional structure, governance, and accounting of public pensions.

Proposed reforms

We conclude by offering several institutional, governance, and reporting reforms to address the pension funding crisis.