Mexico: Financial Sector Assessment Program Update: Technical Note: Industrial Organization and Competition: Pension System in Mexico
May 15, 2007
Summary
The technical note on Mexico’s Financial Sector Assessment Program update analyzes that the private pension system’s regulator in Mexico has introduced innovate rules. Mexico, as with many other countries in Latin America, has adopted an individual capitalization pension system. The design of these pension reforms confers the administration of pension funds to private companies. Under these schemes, competition plays a key role, keeping prices low, a good quality of service, and an efficient investment allocation.
Subject: Aging, Competition, Demand elasticity, Economic theory, Expenditure, Financial markets, Pension spending, Population and demographics, Price controls, Prices
Keywords: Aging, commissions income, commissions income share, company marketing costs, Competition, cost AFOREs, cost firm, CR, D. commission structure, Demand elasticity, equivalent commission, fee structure, high quality Afores, incumbent Afores, ISCR, marketing cost, Pension spending, Price controls, price escalation, prices low
Pages:
23
Volume:
2007
DOI:
Issue:
164
Series:
Country Report No. 2007/164
Stock No:
1MEXEA2007003
ISBN:
9781451825725
ISSN:
1934-7685






