Will Bequests Attenuate the Predicted Meltdown in Stock Prices When Baby Boomers Retire
Bibliographic Data
| ID | 19317610 |
|---|---|
| Authors | Andrew B Abel (University of Pennsylvania, corresponding author) |
| Year | 2001 |
| Volume | 83 |
| Issue | 4 |
| Pages | 589-595 |
| Publication date | 2001-11-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press - Journals (PUBLISHER) |
| DOI | 10.1162/003465301753237678 |
| OpenAlex | W3123676081 |
| Language | EN |
| Citations received | 10 |
| References cited | 1 |
General equilibrium models that predict a reduction in asset prices when baby boomers retire typically assume that people consume all of their wealth before they die. However, many people hold substantial wealth when they die. I develop a rational expectations, general equilibrium model with a bequest motive. In this model, a baby boom increases stock prices, and stock prices are rationally anticipated to fall when the baby boomers retire, even though consumers continue to hold assets throughout retirement. The continued high demand for assets by retired baby boomers does not attenuate the fall in the price of capital
Baby boom · Baby boomers · Bequest · Economics · General equilibrium theory · Labour economics · Microeconomics · Monetary economics · Overlapping generations model · Population · Stock (firearms) · Economic theories and models · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics
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| Unique citing works | 10 |
|---|---|
| Citations per year | 0.5 |
| Citation span | 2006 - 2017 (12) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 9 |