What will happen to financial markets when the baby boomers retire?

Description

Contents I. Introduction II. The Paper vis-a-vis the Literature III. The Model IV. Equilibrium V. The State Variables VI. The Solution Method VII. Accuracy of the Solution Method VIII. Model Parameterization IX. Simulation Results X. Simulating a Baby Boom-Baby Bust XI. Conclusion Text Tables 1. The Age Distribution over Time 2. Steady State Values for the Model without Uncertainty 3. Descriptive Statistics of the Consumption-Saving Model 4. Correlations based on Third-Order Approximation 5. Descriptive Statistics of the Consumption-Investment Model 6. Correlations based on Third-Order Approximation using (4) 7. Descriptive Statistics of the Consumption-Investment Model with Social Security 8. Correlations based on Third-Order Approximation 9. Descriptive Statistics of the Consumption-Investment Model using (4') 10. Correlations based on Third-Order Approximation 11. Correlations based on Third-Order Approximation Figures 1. Population Growth 2. Returns on Capital and the Riskless Asset 3. Wage Income 4. Return Differential between Stocks and Bonds 5. Per Capita Consumption of Young Workers 6. Per Capita Equity Holding of Young Workers 7. Per Capita Bond Holding of Young Workers 8. Per Capita Equity Holding of Old Workers 9. Per Capita Bond Holding of Old Workers 10. Ratio of Old to Young Workers 11. Per Capita Consumption of Retirees 12. Discounted Lifetime Utility 13. Wage Income 14. Workers per Retiree 15. Per Capita Retirement Benefit 16. Returns on Capital and the Riskless Asset 17. Wage Income 18. Return Differential between Stocks and Bonds 19. Per Capita Consumption of Retirees 20. Discounted Lifetime Utility References