TY  - BOOK
AU  - Farmer,Leland
AU  - Farmer,Roger
ED  - National Bureau of Economic Research.
TI  - Zoomers and Boomers: Asset Prices and Intergenerational Inequality 
T2  - NBER working paper series
PY  - 2022///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - Financial Markets and the Macroeconomy
KW  - jelc
KW  - Asset Pricing • Trading Volume • Bond Interest Rates
N1  - September 2022; Hardcopy version available to institutional subscribers
N2  - We construct a perpetual youth DSGE model with aggregate un- certainty in which there are dynamically complete markets and agents have Epstein-Zin preferences. We prove that, when endowments have a realistic hump-shaped age-profile, our model has three steady-state equilibria. One of these equilibria is dynamically inefficient and displays real price indeterminacy. We estimate the parameters of our model and we find that a fourth-order approximation around the indeterminate steady-state provides the best fit to U.S. data. Our work interprets the large and persistent generational inequality that has been observed in western economies over the past century as the result of uninsurable income shocks to birth cohorts
UR  - https://www.nber.org/papers/w30419
UR  - http://dx.doi.org/10.3386/w30419
ER  -