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production. The market allocation of risk depends significantly on the young generation's willingness to substitute … intertemporally and on government policy. Safe government debt shifts productivity risk from old to young while wage-indexed social … security is essentially neutral. I also compare the market allocation to the efficient allocation of risk. …
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This paper is an attempt to study the role that stable economic, financial, and political environments play in economic growth. It employs a modified version of the new growth model as developed by Barro (1997) in a sample of 80 developing countries. Unlike previous studies, the paper...
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