Theory of Choice, and (iii) Quiggin's Rank-dependent Utility. Specifications (ii) and (iii) exhibit "first-order" risk … literature, solutions are not typically at kinks; neither kinks nor actual solutions involve zero stockholding when income risk …. Mere disentangling of risk aversion from elasticity has small effects, while dual theory predictions are farther from the …

buffer consumption from annual income shocks, and "long-run" life cycle considerations under income certainty. However … factors on mean and median asset holdings, including education, risk aversion, household heterogeneity, bequests, impatience …, variance and serial correlation of income shocks. Numerical solutions are compared with data from the 1992 Survey of Consumer …

This paper studies effects of two classes of borrowing constraints, collateral- and income-based, on wealth … constrained households engage in less borrowing and less holding of risky assets than desired is borne out for income … income but precautionary wealth holding is zero. Income-based constraints reverse the sign of precautionary effects on …

Markowitz’s (1952) portfolio theory has permeated financial institutions over the past 50 years. Assuming that returns … the creation of more efficient portfolios as characterized by higher risk-adjusted ratios. These findings open the door …