Intergenerational Risk Trading and the Innovative Role of Equity- Wage Swaps [extrait BMI 144]
Version numérique PDF
From a life cycle theory perspective, both young and old individuals may gain from a reallocation of equity and wage risk exposure between each other. However, current financial markets do not offer wage growth-linked securities and borrowing against labor income without collateral is difficult. To improve intergenerational risk reallocation, we propose a market-based voluntary risk trading arrangement between coexisting generations via an innovative swap market where participants trade equity-related returns for wage-linked returns, and vice versa. The maturity of the swap contract is restricted to one year to address the collateral issue. We find there isalways a market for equity?wage swaps and the market-clearing premium will vary depending on multiple state variables (economy, demographics, and human and financial capital). This innovative swap market is effective at improving the welfare of all generations because the trading of wagelinked returns leads to a more complete market, enabling individuals to realize a more preferred risk exposure over their life cycles.JEL classification: D52; G11; G23.Keywords: Intergenerational Risk Trading; Equity-wage Swap Market; Wage-linked Claims; Incomplete Market; Equilibrium Pricing.
Auteurs :Cui Jiajia
Reference
BMI144-1129613
Condition
New
16 other products in the same category:
Previous
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Short-term Impacts of the 2004 Indian Ocean Tsunami on Stock Markets: A DCC-GARCH Analysis
Equity Option Listing and Underlying Market Quality: Evidence from a Price Duration Model
Does the Catering Theory of Dividend Apply to the French Listed Firms?
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Relationships between Trading Volume, Stock Returns and Volatility: Evidence from the French Stock Market
Violating United Nations Global Compact Principles: An Event Study
Investigating a Fund Return Distribution when the Value of the Fund under Management is Irregularly Observed
Intergenerational Risk Trading and the Innovative Role of Equity- Wage Swaps
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Active Portfolio Management with Conditional Tracking Error
Bank Acquisitiveness and Financial Crisis Vulnerability
Is Macroeconomic Announcement News Priced?
Focus On
Basel III and Bank Liquidity Creation
Availability: Out of stock
Sommaire
Articles
How Risky are Low-Risk Hedge Funds?
Hedge Funds Managerial Skill Revisited: A Quantile Regression Approach
Multi-Asset Seasonality and Trend-Following Strategies
New Insight on the Performance of Equity Long/short Investment Styles
Availability: Out of stock
Risk-Based and Factor Investing
Expected Credit Loss vs. Credit Value Adjustment: A Comparative Analysis
Analyst Earnings Forecasts, Individual Investors’ Expectations and Trading Volume
Changing Dynamic Relationships between Stock and Bond Markets in Crises
Do Regulatory and Supervisory Reforms Affect European Bank Stability
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Short-term Impacts of the 2004 Indian Ocean Tsunami on Stock Markets: A DCC-GARCH Analysis
Equity Option Listing and Underlying Market Quality: Evidence from a Price Duration Model
Does the Catering Theory of Dividend Apply to the French Listed Firms?
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Relationships between Trading Volume, Stock Returns and Volatility: Evidence from the French Stock Market
Violating United Nations Global Compact Principles: An Event Study
Investigating a Fund Return Distribution when the Value of the Fund under Management is Irregularly Observed
Intergenerational Risk Trading and the Innovative Role of Equity- Wage Swaps
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Active Portfolio Management with Conditional Tracking Error
Bank Acquisitiveness and Financial Crisis Vulnerability
Is Macroeconomic Announcement News Priced?
Focus On
Basel III and Bank Liquidity Creation
Availability: Out of stock
Sommaire
Articles
How Risky are Low-Risk Hedge Funds?
Hedge Funds Managerial Skill Revisited: A Quantile Regression Approach
Multi-Asset Seasonality and Trend-Following Strategies
New Insight on the Performance of Equity Long/short Investment Styles
Availability: Out of stock
Risk-Based and Factor Investing
Expected Credit Loss vs. Credit Value Adjustment: A Comparative Analysis
Analyst Earnings Forecasts, Individual Investors’ Expectations and Trading Volume
Changing Dynamic Relationships between Stock and Bond Markets in Crises
Do Regulatory and Supervisory Reforms Affect European Bank Stability
Availability: Out of stock
Availability: Out of stock
Sommaire
Articles
Short-term Impacts of the 2004 Indian Ocean Tsunami on Stock Markets: A DCC-GARCH Analysis
Equity Option Listing and Underlying Market Quality: Evidence from a Price Duration Model
Does the Catering Theory of Dividend Apply to the French Listed Firms?
Availability: Out of stock
Availability: Out of stock
Availability: Out of stock
Next
This website uses cookies to ensure you get the best experience on our website
Got it!
![Editorial [extrait BMI 140]](https://eska-publishing.com/10935-home_default/editorial-extrait-bmi-140-.jpg)
