An unfunded Social Security system faces a major risk, sometimes referred to as ‘political risk’. In order to account … properly for this risk, the paper considers a political process in which the support to the system is asked from each newborn …-generational redistribution, risk aversion, financial markets, governmental debt- on the political sustainability of a pay-as-you-go system is …

We investigate intergenerational risk sharing in two-pillar pension systems with a pay-as-you-go pillar and a funded … intergenerational risk sharing can be achieved only in the presence of a defined benefit pension system with appropriate restrictions on …

This Paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households … are heterogeneous with respect to income and preferences, and mortgage lending is restricted by a down-payment requirement … following results. (1) Current income of young credit-constrained households affects housing prices independently of aggregate …

income to fixed factors. If rents are introduced by setting a ceiling on human capital accumulation, the economy may achieve … a larger income level, even though the ceiling reduces the economy's feasibility set. Threshold effects and multiple …

We explore intergenerational and international risk sharing in a general equilibrium multiple-country model with two …

This paper explores the optimal risk sharing arrangement between generations in an overlapping generations model with … endogenous growth. We allow for nonseparable preferences, paying particular attention to the risk aversion of the old as well as … overall 'life-cycle' risk aversion. We provide a fairly tractable model, which can serve as a starting point to explore these …