Demography and Asset Pricing: Will the Stock Market Decline when the Baby Boomers Retire? 
Demography and Asset Pricing: Will the Stock Market Decline when the Baby Boomers Retire? by Yale / John Geanakoplos
Video Lecture 13 of 26
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Date Added: June 5, 2011

Lecture Description

Overview:
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.

Reading assignment:
Ross, Corporate Finance, chapter 5
Bodie, Finance, pp. 143-182

Course Index

Course Description

This course attempts to explain the role and the importance of the financial system in the global economy. Rather than separating off the financial world from the rest of the economy, financial equilibrium is studied as an extension of economic equilibrium. The course also gives a picture of the kind of thinking and analysis done by hedge funds.

Course Structure:
This Yale College course, taught on campus twice per week for 75 minutes, was recorded for Open Yale Courses in Fall 2009.

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