Lecture 12 - Demography and Asset Pricing, Financial Theory

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.

Channel: ACADEMIC EARTH Video Length: 0s Date Found: Fri, Apr 29 2011 3:44 PM Category: Educational Date Produced: View Count: 0