Demography and equity premium

Kuhle, Wolfgang

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URL:	https://ub-madoc.bib.uni-mannheim.de/1863
URN:	urn:nbn:de:bsz:180-madoc-18631
Document Type:	Working paper
Year of publication:	2008
The title of a journal, publication series:	MEA Discussion Papers
Volume:	157
Place of publication:	Mannheim
Publication language:	English
Institution:	School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series:	Veröffentlichungen des MEA (Mannheim Research Institute For the Economics of Aging) > MEA Discussion Papers
Subject:	330 Economics
Subject headings (SWD):	Arbeitsmarktpolitik , Geburtenschwacher Jahrgang , Bevölkerungsentwicklung
Abstract:	This article comprises a tractable two-generations-overlapping, stochastic, neoclassical production economy, where government bonds are in positive net supply. In this framework we show that the entrance of larger (smaller) cohorts into the labor market will lead to an increase (decrease) in the risky and the riskless rate and to an increase (decrease) in the expected equity premium.
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