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Annuity market imperfection, retirement and economic growth

Heijdra, Ben J.; Mierau, Jochen O. - 2009

We study the effects of an annuity market imperfection on individual agents' labour supply and retirement decisions and on the macroeconomic growth rate in an overlapping generations model with endogenous growth. We model imperfect annuities by introducing a load factor on the interest rate...

Persistent link: https://www.econbiz.de/10010266022

The tragedy of annuitization

Heijdra, Ben J.; Mierau, Jochen O.; Reijnders, Laurie S. M. - 2010

We construct a tractable discrete-time overlapping generations model of a closed economy and use it to study government redistribution of accidental bequests and private annuities in general equilibrium. Individuals face longevity risk as there is a positive probability of passing away before...

Persistent link: https://www.econbiz.de/10010270647

Economic growth and longevity risk with adverse selection

Heijdra, Ben J.; Reijnders, Laurie S. M. - 2009

We study a closed economy featuring heterogeneous agents and exhibiting endogenous economic growth due to interfirm external effects. Individual agents differ in terms of their mortality profile. At birth, nature assigns a health status to each agent. Health type is private information and...

Persistent link: https://www.econbiz.de/10010274230

Indebted Demand

Mian, Atif - 2020

We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower aggregate demand, and thus natural interest rates. At the core of the theory is the simple yet under-appreciated observation that borrowers and savers differ in their marginal...

Persistent link: https://www.econbiz.de/10012836950

Probabilistic aging

Grafenhofer, Dominik; Jaag, Christian; Keuschnigg, Christian - 2006

The paper develops an overlapping generations model with probabilistic aging of households. We define age as a set of personal attributes such as earnings potential, health and tastes that are characteristic of a person's position in the life-cycle. In assuming a limited number of different...

Persistent link: https://www.econbiz.de/10010261425

Effects of unilateral climate policy on terms of trade, capital accumulation, and welfare in a world economy

Farmer, Karl; Friedl, Birgit; Rainer, Andreas - 2008

We present a two-good, two-country overlapping generations model where emissions arise from production and each country has a domestic emission permit system. When one country unilaterally reduces her cap on emissions, her output available for domestic and foreign consumption diminishes more...

Persistent link: https://www.econbiz.de/10010264419

Internationally coordinated emission permit policies : an option for withdrawers from the Kyoto protocol?

Bednar-Friedl, Birgit; Farmer, Karl - 2009

This paper investigates the welfare costs of unilateral versus internationally coordinated emission permit policies in a two-country overlapping generations model with producer carbon emissions. We show that, for a net foreign debtor country, the domestic welfare costs of a unilateral domestic...

Persistent link: https://www.econbiz.de/10010266024

Human capital accumulation and the macroeconomy in an ageing society

Heijdra, Ben J.; Reijnders, Laurie S. M. - 2012

How do population ageing shocks affect the long-run macroeconomic performance of an economy? To answer this question we build a general equilibrium overlapping generations model of a closed economy featuring endogenous factor prices. Finitely-lived individuals are endowed with perfect foresight...

Persistent link: https://www.econbiz.de/10010291543

Pension Reform, Retirement and Life-Cycle Unemployment

Jaag, Christian; Keuschnigg, Christian; Keuschnigg, Mirela - 2021

: strengthening the tax benefit link, moving from wage to price indexation of benefits, lengthening calculation periods, and …

Persistent link: https://www.econbiz.de/10013316657

Uncertainty and the Cost of Bank vs. Bond Finance

Grimme, Christian - 2019

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending … the value of the lending relationship and lowers the lending rate. Bond investors demand compensation for the increased …

Persistent link: https://www.econbiz.de/10012892132