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Aging societies will have to rely increasingly on private savings to finance retirement. The natural savings vehicles …, state-contingent government bonds are a better risk sharing tools than pensions, which become too costly, or taxation, which … improvements. To the extent that public pensions remain important, plans with wage-indexed defined benefits seem preferable to …
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savings accounts in an intertemporal model with uncertainty, endogenous involuntary unemployment and retirement decisions …
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Purchasing life insurance is for the welfare of young children, particularly preteens, who are liquidity constrained. In this paper, we present a life cycle model of life insurance that takes into account the ages of these young beneciaries. We show that, as the child ages, the need for...
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