Abstracts of Working Papers in Economics

2003 Abstracts of Working Papers in Economics  
AB Is the stock market boom a result of the baby boom? This paper develops an overlapping generations model in which a baby boom is modeled as a high realization of a random birth rate, and the price of capital is determined endogenously by a convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of capital. The price of capital is mean-reverting so the initial increase in the price of capital is followed by a decrease. Social
more » ... urity can potentially affect national saving and investment though, in the long run, it does not affect the price of capital.
doi:10.1017/s0951007900006185 fatcat:zzvpuctu4jhrxa5yh7d45rp75a