implications for the allocation of risk between generations. There is no reason to presume that the market or the family can … allocate risk efficiently to future generations, implying that stochastic government policies have the potential to create …

This paper examines the risk aspects of a fully phased-in investment-based defined contribution Social Security plan … system. A higher saving rate provides a cushion' that reduces the risk of unacceptably low benefits. For example, saving 6 … annuity exceeds 92 percent of the benchmark benefit. We also study a modified plan in which retirees face no risk of …

. After a negative macroeconomic shock, relatively risk tolerant investors sell risky assets while more risk averse investors … risk after a negative macroeconomic shock and lower exposure after a positive shock …This paper develops an overlapping generations model of optimal rebalancing where agents differ in age and risk …

The theoretical literature on generational risk assumes that this risk is large and that the government can effectively …We find that intrinsic generational risk is quite small, that government policies can produce generational risk, and … that bond markets can help share generational risk. We also show that a bond market can mitigate risk-inducing government …

benefits of risk reduction, leaving systems with more frequent adjustments that spread risks broadly among generations as those …

a simple extension of the long-run risk model …

Assessing the importance of uninsurable wage risk for individual financial choices faces two challenges. First, the … identification of the marginal effect requires a measure of at least one component of risk that cannot be diversified or avoided …. Moreover, measures of uninsurable wage risk must vary over time to eliminate unobserved heterogeneity. Second, evaluating the …