This paper analyses the political constraints of intergenerational risk sharing. The …rst result is that the political process generally does not lead to ex ante optimal insurance. The second result is that in a second best political setting PAYG still contributes to intergenerational risk sharing. The third result is that aging increases the discrepancy between …rst-best and second-best transf...

This study examines the work capacity of older adults in Japan. First, we estimate the relationship between a variety of health indicators and work status. Work status is divided into full-time work, part-time work, and retired for those in their 50s who are not yet age-eligible for public pension benefits. Then, we simulate work capacity for those in their pension-eligible 60s and the first ha...

This paper studies an overlapping generations model with selfish agents, natural resources and human capital externalities. The initial result is to quantify the economic effects of intergenerational transfers by comparing a complete markets allocation with transfers to an allocation without transfers due to incomplete markets. The core contribution is then to show that a higher resource regene...

The realization that mere existence of health care facilities does not necessarily mean that they are readily accessible to the poorest section in the informal economy, tend to the evolution of a unique health insurance scheme, with contribution according to individual capacity. This paper examines several health insurance schemes catering to the informal sector as well as some critical issues ...

The equity premium puzzle shows that using standard parameters and setup, the Consumption-based Capital Asset Pricing Model’s (CCAPM’s) prediction of the premium associated with systematic risk is out by an order of magnitude. The object of this paper is to consider the implications of each of the broad classes of explanations of the equity premium puzzle for resource allocation, welfare and po...

Using a proprietary dataset of institutional investors’ equity transactions, we document that institutional trading desks can sustain relative performance over adjacent periods. We find that trading-desk skill is positively correlated with the performance of the institution’s traded portfolio, suggesting that institutions that invest resources in developing execution abilities also invest in ge...

Using a comprehensive and survivor bias-free dataset of US hedge funds, we document the role that inside investment plays in managerial compensation and fund performance. We find that funds with greater investment by insiders outperform funds with less “skin in the game” on a factor-adjusted basis, exhibit greater return persistence, and feature lower fund flow-performance sensitivities. These ...

Distributing assets to Family Limited Partnerships (FLPs) is an estate planning technique designed to reduce assets subject to estate taxation. This paper discusses power index models as measures of power along with extensions of indices to value minority discounts. Power indices and valuation models proposed here are directly applicable to valuing other business entities, particularly where co...

Using a variety of different definitions of “neutrality,” this study presents significant evidence against the neutrality to market risk of hedge funds in a range of style categories. I generalize standard definitions of “market neutrality,” and propose five different neutrality concepts. I suggest statistical tests for each neutrality concept, and apply these tests to a database of monthly ret...