Bagliano, Fabio; Fugazza, Carolina; Nicodano, Giovanna - Dipartimento di Economia, Metodi Quantitativi e … - 2013
Household portfolios include risky bonds, beyond stocks, and respond to permanent labour income shocks. This paper brings these features into a life-cycle setting, and shows that optimal stock investment is constant or increasing in age before retirement for realistic parameter combinations. The...