ECON 251: Financial Theory
Lecture 13 - Demography and Asset Pricing: Will the Stock Market Decline when the Baby Boomers Retire? In this lecture, we use the overlapping generations model from the previous class to see, mathematically,
how demographic changes can influence interest rates and asset prices. We evaluate Tobin's statement that a perpetually growing population could solve the Social Security problem, and resolve, in a surprising way,
a classical argument about the link between birth rates and the level of the stock market. Lastly, we finish by laying some of the philosophical and statistical groundwork for dealing with uncertainty.
(from oyc.yale.edu)
| Lecture 13 - Demography and Asset Pricing |
| Time | Lecture Chapters |
| [00:00:00] | 1. Stationarity and Equilibrium in the Overlapping Generations Model |
| [00:16:38] | 2. Evaluating Tobin's Thoughts on Social Security |
| [00:35:07] | 3. Birth Rates and Stock Market Levels |
| [01:02:30] | 4. Philosophical and Statistical Framework of Uncertainty |
| References |
| Lecture 13 - Demography and Asset Pricing Instructor: Professor John Geanakoplos. Transcript [html]. Audio [mp3]. Download Video [mov]. |
Go to the Course Home or watch other lectures: