Ordoņez, Guillermo. <br/><br/>
Retirement in the Shadow (Banking) / 
Guillermo Ordoņez, Facundo Piguillem. 
 - Cambridge, Mass.  National Bureau of Economic Research  2019. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w26337 .
 - Working Paper Series (National Bureau of Economic Research)  no. w26337. .
<br/><br/> October 2019. 
<br/><br/> The U.S. economy has recently experienced two, seemingly unrelated, phenomena: a large increase in post-retirement life expectancy and a major expansion in securitization and shadow banking activities. We argue they are intimately related. Agents rely on financial intermediaries to save for post-retirement consumption. When expecting to live longer, they rely more heavily on intermediaries that use securitization, with riskier but higher returns. A quantitative evaluation of the model shows the potential of the demographic transition to account for a boom in credit and output, but only when it triggers a more extensive use of securitization and shadow banking. 
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