In an economy where graduate jobs are allocated by a matching tournament, and some of the potential participants cannot borrow against their expected future earnings, the government can increase efficiency and ex ante equity by redistributing wealth or, if that is not possible, by borrowing...

The early contributions to the economic literature on this sub- ject assume that only market goods yield utility, and that the only way adults can secure the consumption of these goods in old age is by saving. More recent contributions recognize that the elderly derive utility also from the care...