The introduction of social security can Pareto-improve social welfare by sharing aggregate risks between generations, but the reform's crowding-out effect on capital tends to overturn these gains in welfare (with
Dirk Krueger).[5]
A borrowing interest rate equal to the expected return on equity minimizes the demand for equity (with
Steven J. Davis and Paul Willen).[6]
Competitive equilibria always exist in models with a single perishable consumption good and productive assets as the only collateral, and, assuming that all exogenous variables follow a
Markov chain, there are also stationary equilibria, which can be characterized by a mapping from the exogenous shock and current distribution of financial wealth to prices and portfolio choices (with Karl Schmedders).[7]
Together with Dirk Krueger, Kübler has developed a method to compute equilibria in
overlapping generations models with stochastic production based on Smolyak's algorithm.[8]
Selected publications
Brown, D.J., Kübler, F. (2008). Computational Aspects of General Equilibrium Theory. Heidelberg: Springer-Verlag.