Davis, Steven J. (contributor); Kubler, Felix (contributor); … - 2005 - This version: May 2, 2005
shows that households invest exclusively in equities in the base-
line parameter specification. When households cannot … equity holdings and housing wealth. In this respect, a comparison of
Tables 2 and 7 shows that risky asset holdings (equities …) in our preferred model
(rB = 8 percent) and in the no-borrowing model are lower than equities plus housing
in the data …