function is studied experimentally.The experiment allow us to study the main parametersof the model, suggesting that we should …

undiversifiable labor income risk. Optimal portfolios are internationally diversified while positive correlation between domestic … with a small amount of buffer stock saving, while exchange rate risk makes foreign investments less appealing to risk …

labor income risk and stock-market participation costs. In contrast to the initial motivation, we find that the model is not …

short sales and borrowing constraints, undiversifiable labour income risk and a predictable time varying equity premium. The …

We show that a life cycle model with realistically calibrated uninsurable labour income risk and moderate risk aversion … risk aversion. Households with low risk aversion smooth earnings shocks with a small buffer stock of assets, and … consequently most of them (optimally) never invest in equities. Therefore, the marginal stockholders are (endogenously) more risk …

We calibrate a life-cycle model with uninsurable labour income risk and borrowing constraints to match wealth …

simultaneously matching stock market participation and individual asset holdings. The high risk premium is driven by incomplete risk … negligible impact on the risk premium, contrary to the results of models where it is imposed exogenously. …