demographic shock matter: in the case of a lower mean or a higher variance, a smaller average contribution results from the vote …

This paper studies the interaction between macro-economic risk and pay-go social security. For this, it uses an applied … general equilibrium model with overlapping generations of risk-averse households. The sources of risk are productivity shocks … and depreciation shocks. The risk profile of pensions differs from that of financial assets, because pensions are linked …

develops an overlapping generations model in which agents differ both in age and risk tolerance. Equilibrium rebalancing is … driven by a leverage effect that affects levered and unlevered agents in opposite directions, an aggregate risk tolerance …