Are market and voting institutions capable of producing optimal intergenerational risk-sharing? To study this question … that take place in markets and voting institutions. Unlike most of that literature, we study both ex-ante and interim risk …-sharing. Our main conclusion is that both types of institutions have serious problems. Markets cannot generate ex-ante risk …

This paper examines the risk aspects of a fully phased-in investment-based defined contribution Social Security plan … system. A higher saving rate provides a cushion' that reduces the risk of unacceptably low benefits. For example, saving 6 … annuity exceeds 92 percent of the benchmark benefit. We also study a modified plan in which retirees face no risk of …

This paper analyzes how the combination of borrowing constraints and idiosyncratic risk affects the equity premium in … idiosyncratic risk increases the equity premium by 70 percent, which means that the mechanism described in Constantinides, Donaldson … the zero-borrowing constraint is a lot weaker. More surprisingly, when I introduce idiosyncratic labor income risk in an …