Gambler ruin random walks and brownian motions in reserves modeling, application to pensions funds sustainability

TL;DR

This paper models pension fund reserves using random walks and Brownian motions to analyze sustainability, providing insights into reserve management through stochastic process modeling.

Contribution

It introduces a stochastic modeling approach using random walks and Brownian motions to assess pension fund reserves and their sustainability.

Findings

Random walk models help understand reserve fluctuations.

Brownian motion provides a continuous approximation for reserves.

Insights into reserve sustainability under stochastic dynamics.

Abstract

We used the random walk to model the problem of reserves. The classic case of a stochastic process is the example of random walks, which are used to study a set of phenomena and, particularly, as in this article, models of reserves evolution. Random walks also allow the construction of significant complex systems and are also used as an instrument of analysis, being used in the sense of giving a theoretical characteristic to other types of systems. Our goal is primarily to study reserves to see how to ensure that pension funds are sustainable. This classic approach to the study of pension funds makes possible to draw interesting conclusions about the problem of reserves.