Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145948
Authors: 
Mann, Katja
Davenport, Margaret
Year of Publication: 
2016
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Demographic Change and the Macroeconomy II D24-V2
Abstract: 
This paper studies the effect of population aging on portfolio choice, asset prices and international asset trades. In a multi-period OLG model, we analyze how an increase in longevity or a decrease in fertility in a country affects the demand for safe and risky assets. In a closed economy, given a fixed supply, the riskfree rate falls and the risk premium rises, because retirees prefer to hold a larger share of safe assets in their portfolio than working-age households. In a financially integrated world, countries with more extreme demographic trends export risky assets and import safe assets. We quantify these effects for the United States.
JEL: 
G11
G15
J11
Document Type: 
Conference Paper

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