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

Swiss Journal of Economics and Statistics

Table 6 Mc-Crary Test for Discontinuity in pension funds funding ratio at 100 percent

Year(s)	\(\theta\)	SE	Obs.	Binwidth (b)	Bandwidth (h)
2006	1.234***	(0.266)	2138	0.486	6.4
2007	1.352***	(0.224)	2034	0.479	7.1
2008	0.583***	(0.123)	1988	0.497	7.1
2009	0.685***	(0.124)	1975	0.460	8.8
2010	0.978***	(0.123)	1897	0.471	9.9
2011	0.880***	(0.124)	1861	0.497	7.0
2012	0.972***	(0.144)	1749	0.475	9.9
2013	1.754***	(0.292)	1647	0.485	7.4
2014	1.331***	(0.298)	1566	0.505	7.2
2015	1.345***	(0.221)	1524	0.506	7.8
2016	1.492***	(0.266)	1464	0.507	7.4
2017	1.307***	(0.374)	1396	0.521	7.8
2006–2017	1.012***	(0.054)	21,239	0.154	6.5

Table reports the estimated jump in the distribution of funding ratios following the testing procedure of McCrary (2008). \(\theta\) measures the log-difference in the polynomials fitted to the left and right of the cutoff of 100%. Standard errors in parentheses. Obs. indicates the number of observations per period, bin width the bin size of the first stage histogram, band width of the triangular kernel to determine the discontinuity at the cutoff. Significance levels at 0.05 *, 0.01 ** and 0.001 ***. 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)