We develop a life-cycle OLG model with heterogeneous characteristics for population share, work probability, survival rate, labor productivity, subjective discount rate, and intertemporal elasticity of substitution. We can observe the deviations in financial decisions and asset accumulation...

This study develops a life-cycle model to predict an overlapping generations economy comprising heterogeneous agents. In the proposed model, ex-ante heterogeneity involves the work probability, survival rate, subjective discount rate, and intertemporal elasticity of substitution. We observe...

Although the insurance industry has a significant economic role, few theoretical studies link insurance with the overlapping generations economy. This study suggests a new overlapping generations model that includes insurance in the agents’ economic decisions under the uncertainty of financial...

We suggest an overlapping generations model incorporating the risk-adjusted valuation in a worker’s decision problem. The risk-adjusted probabilities allow risk-averse workers to place more weight on cash flows upon retirement when assessing lifetime income at present value. The risk-adjusted...