Excessive risk-taking in the banking industry has led to the default of firms and to increased systemic risks as demonstrated during the previous financial crisis. The causes of this excessive risk taking are numerous and complex. However, it is now consensus that inappropriate remuneration...

In the model world with overlapping generations and uncertain life expectancy indi-viduals can live for a maximum of two periods. Only one part of each generation sur-vives the working phase and lives to enjoy retirement. The other part dies after the first half of life. Within this framework it...