Floden, Martin - Economics Institute for Research (SIR), … - 2005
.
JEL classification: E21; D52; D90
Keywords: equilibrium interest rate; aggregate savings; precautionary saving; infi-
nite … Stockholm, Sweden.
martin.floden@hhs.se, ph: +46-8-7369263.
1Introduction
It is well known that the equilibrium interest rate … insurance markets are incomplete. In such economies, the equilibrium interest
rate is lower than the time discount rate and the …