Motivated by the success of internal habit formation preferences in explaining asset pricing puzzles, we introduce these preferences in a life-cycle model of consumption and portfolio choice with liquidity constraints, undiversifiable labor income risk and stock-market participation costs. In...

Motivated by the success of internal habit formation preferences in explaining asset-pricing puzzles, we introduce these preferences in a life-cycle model of consumption and portfolio choice with liquidity constraints, undiversifiable labour income risk and stock-market participation costs. In...

Purpose The purpose of this paper is to investigate the extent to which the distance to retirement affects low employment rates among European older workers, taking into account a key but often neglected determinant: health status. Design/methodology/approach To begin, the study amends...