Campanale, Claudio - In: Journal of Economic Dynamics and Control 33 (2009) 9, pp. 1682-1698
In life-cycle portfolio choice models it is standard to assume that all agents invest in a diversified stock market index. In contrast recent empirical evidence, summarized in Campbell [2006. Household finance. Journal of Finance 61, 1553-1604] suggests that households' financial portfolios are...