Scale economies in the pension fund managers industry in Mexico: a semi parametric approach
REV WSP No.6
Aguilera Aburto, Nelly, -2017
Scale economies in the pension fund managers industry in Mexico: a semi parametric approach / Nelly Aguilera, César Velázquez. -- México: CISS: UIA, 2008. 55-72 p. : il.; 22 cm. - Semestral - Revista Well-being and Social Policy, Vol. 4, No. 1, First semester 2008
Well-being and social policy ,
Título en español: Economías de escala en la industria de las administradoras de fondos de pensiones en México: un enfoque semiparamétrico.
Bibliografía p. 71-72.
It has been widely accepted that reforms on pension schemes have led to improvements in the financial viability of the systems. Nevertheless, at the same time it has been shown that fees charged by pension fund managers (PFM) are very high, implying high mark-ups for them and lower expected pensions for the participants. The presence of economies of scale has been suggested as one main reason for the high fees. In this paper we argue that previous studies that have found economies of scale in the case of Mexico were based on cost curves that were empirically not well specified. We estimate a semi parametric cost curve which allows us to conclude that if there exists economies of scale, minimum efficient scales are low, being reached by almost all PFM. The presence or not of economies of scale is highly important to surveillance authorities, since it can lead to different regulatory actions aiming at lowering fees.
PDF 205 KB
1870-2961
Seguridad social--México--Publicaciones periódicas
Seguridad social--Administración--México
Pensiones--México
Velázquez, César,
Conferencia Interamericana de Seguridad Social.
Universidad Iberoamericana. Ciudad de México.