Bakshi, G. S. and C. Zhiwu , 1994, "Baby Boom, Population Aging and Capital Markets", Journal of Business 67, 165-201.  Home/Search   Document Not in Database   Summary   Related Articles   Check

....accounts of the link between demography and asset returns suggest. 1.2 Previous Empirical Literature on Equity Markets and Population Age Structure A small but growing literature has explored the link between stock returns and population age structure. The first systematic study of this issue, by Bakshi and Chen (1994), finds support for the demography matters hypothesis in post World War II U.S. data. The authors include a variable measuring the average age of the U.S. population in a standard Euler equation that relates the growth rate of consumption to stock returns. They find that average age increases ....

....through its lifecycle. The open question concerns how such an age transition affects financial asset values. 2.2 Risk Tolerance and Age Structure One particular aspect of the aging process that emerges in some previous discussions of demography and asset values concerns individual risk tolerance. Bakshi and Chen (1994) justify their inclusion of age variables in Euler equations relating consumption growth on the grounds that older individuals are less risk tolerant than younger individuals. They reason that changes in the 13 age structure of the population should therefore affect the equilibrium risk return ....

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Bakshi, Gurdip and Zhiwu Chen, 1994, "Baby Boom, Population Aging, and Capital Markets," Journal of Business 67, 165-202.

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Bakshi, G. S. and C. Zhiwu , 1994, "Baby Boom, Population Aging and Capital Markets", Journal of Business 67, 165-201.

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