Title of article
Intergenerationalrisksharingandfiscalpolicy$
Author/Authors
Henning Bohn، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
12
From page
805
To page
816
Abstract
Risk-sharingimplicationsofalternativefiscalpoliciesarecomparedinastochastic
production economywithoverlappinggenerations.Exanteefficiencyisshowntobe
achievablewithoptimaltransfers,regardlessofdistributionalconcerns.ForCRRA
preferences, stylizedreal-worldpolicies(notablysafedebtandsafepensions)arefound
inefficientinthedirectionofimposingnotenoughproductivityriskonretireesandtoo
much onfuturegenerations.Safetransferscanberationalizedasefficientifpreferences
displayage-increasingriskaversion,suchashabitformation.Theubiquityofsafe
transfers suggeststhatgovernmentstreattheyoungasmorerisktolerantthanolder
cohorts.
Keywords
AggregaterisksOptimal risksharingIntergenerationaltransfersOverlappinggenerationsSocial securityFiscal policy
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846333
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