"Pension Reform and Asset Allocation: Evidence from Annuity Cuts to Retired Civil Servants in Taiwan," with C. Y. Cyrus Chu and Po-Hsuan Hsu.

• We examine the asset allocation effect of a retroactive pension cut in Taiwan that is specific to retired civil servants. We show that these retirees increased their stock holdings by 7-10% and reallocated toward stocks with higher past returns in the past. Further tests suggest behavior biases due to risk-seeking in the loss domain: first, these retirees did not choose stocks of higher alphas or systematic risk in the past and ended up taking higher realized idiosyncratic risk; second, increased stock holdings are more pronounced in families more sensitive to perceived loss; and third, they exhibited a heightened disposition effect