When returns are partially predictable and trading is costly, CARA investors track a target portfolio at a constant trading speed. The target portfolio is optimal for a frictionless market, where asset returns are scaled back to account for trading costs and volatilities are adjusted to proxy...

This paper develops, calibrates, and simulates a dynamic 88-period OLG model to study the intergenerational transmission of U.S. wealth inequality via bequests. The model features marriage, realistic fertility patterns, random death, assortative mating based on skills, heterogeneous skill...

Intergenerational economics is characterised by three central questions: how much living generations transfer to or from future ones, how these transfers are made, and whether these transfers are sufficient to support sustainable levels of consumption for future generations. Up to now,...