Scale and scope economies in Brazilian pension funds

Abstract

This work identifies the existence of economies of scale and scope for the Brazilian complementary pension funds via quantitative tests on the administrative data base of the Ministry of Social Security. A literature review, a descriptive statistics of the data base, a theoretical model on the existence of economies of scale in complementary pensions, the quantitative methods used, its results and the normative implications will be presented. Econometric results show that economies of scale on Brazilian complementary pensions are stronger than in the rest of the world.