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We explore the benefits of intergenerational risk-sharing through both private funded pensions and via the public debt. We use a multi-period overlapping generations model with a PAYG pension pillar, a funded pension pillar and a government. Shocks are smoothed via the public debt and variations...
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We explore the benefits of intergenerational risk-sharing through both private funded pensions and via the public debt. We use a multi-period overlapping generations model with a PAYG pension pillar, a funded pension pillar and a government. Shocks are smoothed via the public debt and variations...
Persistent link: https://www.econbiz.de/10013058155
This chapter reviews the literature on intergenerational risk sharing (IRS). We explore to what extent and how a market economy with an appropriate institutional setting can replicate a social planner's solution in models with increasing levels of complexity. In particular, we do this for...
Persistent link: https://www.econbiz.de/10014023478
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In this article, we evaluate in detail the role of debt forgiveness in altering the transmission of labor income risk … still a role of debt relief as a form of insurance against 'pure labor income risk'?" We address this question by studying a … range of specifications for households' attitudes toward the intra- and inter-temporal properties of income risk alone. Our …
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