market instruments. Using intergenerational risk sharing arrangements, risks can be allocated better across the various …

The theoretical literature presumes generational risk is large enough to merit study and that such risk can be … technique to overcome the curse of dimensionality and measure generational risk in an 80-period OLG model. The model features … isoelastic preferences, moderate risk aversion, Cobb-Douglas technology, and shocks to both TFP and capital depreciation …

The theoretical literature presumes generational risk is large enough to merit study and that such risk can be … to directly measure generational risk and the extent to which it can be mitigated via financial markets or Social … Security. Depending on our yardstick, generational risk, whether across non-overlapping generations or across overlapping …

This paper explores the optimal risk sharing arrangement between generations in an overlapping generations model with … endogenous growth. We allow for nonseparable preferences, paying particular attention to the risk aversion of the old as well as … overall 'life-cycle' risk aversion. We provide a fairly tractable model, which can serve as a starting point to explore these …

entrepreneurial risk. Although it allows for rich general-equilibrium effects and a stationary distribution of wealth, the model is … following any change in tax policies. Unlike either the complete-markets paradigm or Bewley-type models where idiosyncratic risk …