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Who Should Buy Long-Term Bonds?

By John Y. Campbell and LuisM. Viceira

òòò½Íø Review, March 2001

According to conventional wisdom, long-term bonds are appropriate for conservative long-term investors. This paper develops a model of optimal consumption and portfolio choice for infinite-lived investors with recursive utility who face stochastic interes...

The Growing Gap in Life Expectancy: Using the Future Elderly Model to Estimate Implications for Social Security and Medicare

By Dana P. Goldman and Peter R. Orszag

òòò½Íø Review, May 2014

Mortality gradients by education and income have been rising in the United States and elsewhere. However, their impact on Social Security progressivity has received relatively little attention, and the impact on Medicare has received effectively none. Thi...