Conclusion and Further Research
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 572)
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KeywordsNational Income Physical Capital Pension System Risk Sharing Capital Asset Price Model
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- 1.This should also result in more substantial influence of the adjustment costs in the capital accumulation technology: Jermann , for instance, requires habit formation in the utility specification in order for q-Theory to play a significant role.Google Scholar
- 2.See Shiller [1998, p. 1] and Shiller [2003a].Google Scholar
- 3.In addition to this, Shiller  emphasizes two more dimensions of societal risk sharing. An intragenerational dimension of risk sharing is justified by similar reasons of market failure as the intergenerational one: when risks materialize before agents are old, or before they are capable of making risk management arrangements for themselves, only public risk-management devices can effectively allow elderly to pool the chance that some of them have higher income than others. And with open economies, there is the possibility of international risk sharing. Shiller  gives the theoretical basis for such international trading in different components of national income.Google Scholar
- 4.See Shiller [1998, p. 1–2 and 10–16]. Besides Merton , similar manifes?tations of the intergenerational risk sharing perspective on PAYGO include Bohn , Demange and Laroque , or Krueger and Kubler .Google Scholar
- 5.See, for instance, Simon and Zinsmeister [n.d.] or Kögel  and references therein.Google Scholar
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