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Fig. 10 | Swiss Journal of Economics and Statistics

Fig. 10

From: Swiss pension funds: funding ratio, discount rate, and asset allocation

Fig. 10

Average Technical Discount Rate - Local Linear Regression. Figures show the weighted average discount rate (y-axis) used to discount pension liabilities of insurants, conditional on the funding ratio of the funds (x-axis). Blue solid lines are averages estimated by a local linear regression using a tricube kernel with varying bandwidths, considering the closest 20% of observations. Dotted blue lines show the 95% confidence band from bootstrapped standard errors (500 iterations). The average discount interest rate decreases the better a fund’s funding ratio. The sample includes only private and public funds without state guarantees, and only includes funds with a funding ratio between 81.5 and 152.3% (0.5th–95th percentile range). Years, 2007, 2016, and 2017 in the main text

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