Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of St. Louis
Working Papers
Age distributions and returns of financial assets
Peter S. Yoo

This paper explores the relationship between age distribution and asset returns impled by an overlapping-generations asset pricing model. The model predicts that as more individuals reach the age when the increment to their wealth reaches its maximum, asset returns fall. Cross-sectional evidence from the Survey of Financial Characteristics of Consumers and the Surveys of Consumer Finances indicates that individuals aged 45 to 54 have the largest increment to wealth of all age group. Time series estimates confirm that a close link exists between aggregate household wealth and the size of this age group. In accordance with the model presented in this paper, time series estimates of the relationship between asset returns and age distribution suggests a large, statistically significant, negative correlation between the fraction of the population aged 45 to 54 and the returns of several types of assets.

Download Full text
Download Full text
Cite this item
Peter S. Yoo, Age distributions and returns of financial assets, Federal Reserve Bank of St. Louis, Working Papers 1994-002, 1994.
More from this series
JEL Classification:
Subject headings:
Keywords: Consumer behavior ; Demography ; Saving and investment
For corrections, contact Anna Oates ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal