Franke, Guenter; Schlesinger, Harris; Stapleton, Richard C. - In: Journal of Economic Theory 146 (2011) 4, pp. 1547-1568
We examine the effects of background risks on optimal portfolio choice. Examples of background risks include uncertain labor income, uncertainty about the terminal value of fixed assets such as housing and uncertainty about future tax liabilities. While some of these risks are additive and have...
