We explore the implications of alternative methods of discounting future pension outlays for the valuation of funded pension liabilities. Measured liabilities affect the asset–liability ratio of pension funds and, thereby, their policies. Our framework for analysis is an applied many-generation OLG model describing a small open economy with heterogeneous agents and a two-pillar pension system (with pay-as-you-go and funded tiers) calibrated to that in the Netherlands. We compare mark-to-market discounting against various alternatives, such as discounting against a moving average of past market curves or a curve that is constant over time. The pension buffer is stabilized by adjusting indexation and contribution rates in response to demographic, economic and financial shocks in the economy. Mark-to-market valuation of liabilities produces substantially higher volatility in the pension buffers, but it also generates slightly higher aggregate welfare.

Epiphytes are one of the most ubiquitous elements of tropical forest canopies, including seasonally dry tropical forests. Given the temporal variation in weather conditions in the latter, epiphyte populations may be subject to wide temporal variation in seedling recruitment, reproductive success, vegetative propagation and mortality rate. In this study, we use a 3-y demographic data set for Tillandsia brachycaulos to project its long-term population dynamics through the use of average and periodic matrices, as well as stochastic simulations. The results show that demographic behaviour varied over the 3 years of study, apparently in relation to rainfall. The first 2 years yielded a low λ value (0.79 and 0.80 – although only the former was significantly lower than unity), while the third year resulted in a λ = 1.08 (not significantly different from 1.0). When incorporating this demographic variation in an average matrix, a periodic matrix and stochastic simulations, the resulting overall λ was below unity in all three cases. The projections of the stochastic simulations suggest that the population would be able to persist in the long run only if the frequency of “good” years (defined here as those with an August rainfall above 200 mm) was above 0.6, which appears unlikely given that global warming might result in a lower frequency of rainy years in tropical dry forests.

In the present paper we study the question of how to allocate the reinsurance premium between the sub-portfolios when an excess of loss treaty is to be shared between several sub-portfolios. Several allocation schemes based on the expected value principle and the standard deviation principle are suggested. The calculations are relatively simple with unlimited free reinstatements. However, with limited and/or paid reinstatements the situation becomes rather tricky, and we therefore suggest a simulation scheme.