We develop an overlapping generation model to analyze the underlying factors that determine the saving behavior among European households. We show that an increase in youth labor supply causes a rise in household savings. In response to an increase in corporate equity, household savings...

In this paper, we provide unique experimental evidence of depositors’ behaviour in presence of a possibility to convert commercial bank deposits into central bank digital currency (CBDC). Theoretically and experimentally we analyse whether such an option incentivises bank runs. We find that...

We use experiments to assess the impact of different savings mechanisms in pension system design. The savings mechanisms are chosen with an eye to common features of European pension systems. We introduce a novel utility function in our experiments incorporating habit formation and loss...

We combine risk-neutral densities from equity index options with realized index returns to estimate the market's risk aversion. Starting from a power utility framework with constant risk aversion, we extend it by more flexible stochastic discount factors. We allow for time-varying risk aversion...