This paper re-examines the classic question of how a household should optimally allocate its portfolio between risky … stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits …

If household portfolios are constrained by borrowing and short-sales restrictions asset markets, then alternative … retirement savings systems may affect household welfare by relaxing these constraints. This paper uses a calibrated partial … that realistic heterogeneity of risk aversion and labor income risk can strongly affect optimal portfolio choice over the …

This paper examines how labor income volatility and social security benefits can influence lifecycle household … with low income uncertainty; for the high income risk worker, equity exposure rises until retirement. We also evaluate how … differences in social security benefits can influence retirement risk management …

the rest of the economy via high unemployment and reduced labor earnings, which reduced household contributions to Social …

This paper provides an in-depth review and analysis of household portfolios in Japan. (1) Using both aggregate and … disaggregate data, it is shown that the shares of equities in household financial wealth have been decreasing throughout the 1990s ….S. and European countries in which increasing trends in household stock holdings are observed. (2) Using survey data, age …

constraint') on the household's optimal holdings of financial assets. Since the ratio of housing to net worth declines as the … household accumulates wealth, the housing constraint induces a life-cycle pattern in the portfolio shares of stocks and bonds …. For reasonable degrees of risk aversion, the changes in portfolio composition over the life-cycle can be dramatic. For …

household wealth accumulation is not supported by the data. Institutional factors, asset liquidity, and evolving investor tastes … must be recognized in modeling asset demand. These factors could affect analyses of overall household saving as well as the …