Search Results for: Portfolio Choice Over The Life Cycle In The Presence Of Trickle Down Labor Income

Empirical evidence shows that changes in aggregate labor income and stock market returns exhibit only weak correlation at short horizons. As we document below,

We study portfolio choice for a finite-horizon investor whose labor income is cointegrated with inflation. We show that this long-run relationship has substanti

This paper explores the implications of the additive and endogenous habit formation preferences in the context of a life-cycle model of an investor who has stoc

We study portfolio choice when labor income and dividends are cointegrated. Economically plausible calibrations suggest young investors should take substantial

This article solves a realistically calibrated life cycle model of consumption and portfolio choice with non-tradable labor income and borrowing constraints. Si