Lynch, Anthony W.; Tan, Sinan - In: Journal of Financial Economics 101 (2011) 2, pp. 333-359
Young agents with low wealth-income ratios counter factually hold more stock than young, rich agents and old agents using the standard portfolio choice model with i.i.d. stock returns and labor income. This paper matches the countercyclical volatility and procyclical mean of U.S. labor income...