In this paper we re-examine the risk sharing potential of inter- generational financial intermediaries taking into account their governance structure. We argue that asset buffers of perpetual institutions are limited by the temptation of the living stakeholders to renegotiate contributions and...

In this paper we investigate the risk sharing potential of financial intermediaries in an overlapping generations economy. We find that the intermediaries' allocations are constrained by the temptation of the living to liquidate their intermediary's assets and share the proceeds amongst...

This study explains why increased access to finance remains a top policy priority across the Mediterranean countries. Banks in the region are considered sound. They attract savings and are generally stable. Still, to provide a substantial contribution to growth, they could play a stronger role...

In dieser Studie wird erläutert, warum ein besserer Zugang zu Finanzierungsmitteln in den Mittelmeerländern weiterhin eine besondere Priorität hat. Die Banken in der Region gelten als solide. Sie ziehen Spareinlagen an und sind im Allgemeinen stabil. Um einen wesentlichen Beitrag zum Wachstum...

We analyze an overlapping generations economy where agents interact to share liquidity risk. We show that a pure exchange economy has excessive trade in equilibrium because agents interact to rebalance their portfolios. Intergenerational financial intermediaries reduce the number of interactions...