that differences across countries in technological riskiness, in risk aversion, in population size and in overall … productivity will lead to a non-zero current account in the steady state. Higher technological riskiness, greater risk aversion …

Are market and voting institutions capable of producing optimal intergenerational risk-sharing? To study this question … that take place in markets and voting institutions. Unlike most of that literature, we study both ex-ante and interim risk …-sharing. Our main conclusion is that both types of institutions have serious problems. Markets cannot generate ex-ante risk …

capital of older workers. Due to the lack of inter-generational risk sharing, innovation creates a systematic risk factor …, which we call "displacement risk.'' This risk helps explain several empirical patterns, including the existence of the … growth-value factor in returns, the value premium, and the high equity premium. We assess the magnitude of displacement risk …

facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of … optimal aggregate saving rate is independent of income risk. The optimal time-invariant tax on capital is increasing in income … risk. Its sign depends on the extent of risk and on the Pareto weight of future generations. If the Ramsey tax rate that …

This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of … risk the economy reaches naturally to the allocation that would be reached if generations behind a Rawlsian 'veil of … ignorance' could share risk with one another through complete Arrow-Debreu contingent-claims markets. The paper then examines …