Turnovsky, Stephen J.; Bruce, Neil - In: Economics: The Open-Access, Open-Assessment E-Journal 1 (2007) 2007-2, pp. 1-41
We construct a Blanchard-style overlapping generations model consisting of long-lived individuals who have uninsurable idiosyncratic risk resulting from uncertain retirement periods and medical costs in retirement. Without social insurance, such individuals must save for these eventualities. We...