Analysis to the Chilean Pension Fund System, Comparing Stochastic Technical Frontier and Envelop Technical Frontier Methodologies.

Pension funds has become progressively important because of longer life expectation and greater uncertainty in crisis/ pandemic times. The Chilean pension fund has some remarkable characteristic. However, it has been strongly criticized by the low pensions that provide to retired workers. This paper aims to analyze the efficiency of the organizations that manage pension funds (AFPs), specifically during disrupted times, such as 2008 financial crisis. The methodology applied is a stochastic frontier model and compare its results with previous studies that utilized the alternative method of the envelope technological frontier, even though the period under study is not the same. The contribution is to answer how the crisis impacted in AFPs` outcomes using the stochastic method and the differences between stochastic and absolute methods findings. AFPs increase efficiency but did not impact retired workers. Nonetheless results about economies of scale differs. Further studies focus on workers return are need it.