Catherine, Sylvain; Miller, Max; Paron, James D.; … - 2022
rates fall, but only when wealth does not include the value of Social Security. Hedging demand against interest-rate risk …We present a life-cycle model in which households can invest in short- or long-term assets to hedge against interest-rate … risk. Our model matches important stylized facts. First, the share of long-term assets in households' wealth is hump …