We show that the optimal consumption of an individual over the life cycle can have the hump shape (inverted U …, an impatient individual would prefer a decreasing consumption path over life. However, because of habit formation, a high … initial consumption would lead to high required consumption in the future. To cover the future required consumption, wealth is …

This paper studies the life cycle consumption-investment-insurance problem of a family. The wage earner faces the risk …

I numerically solve realistically calibrated life cycle consumption-investment problems in continuous time featuring …

I analyze a critical illness insurance in a consumption-investment model over the life cycle. I solve a model with …

The observed hump-shaped life-cycle pattern in individuals' consumption cannot be explained by the classical … consumption-savings model. We explicitly solve a model with utility of both consumption and leisure and with educational decisions … affecting future wages. We show optimal consumption is hump shaped and determine the peak age. The hump results from consumption …

We study continuous-time optimal consumption and investment with Epstein-Zin recursive preferences in incomplete …

expected utility life-cycle consumption model and calibrate it with data on subjective survival beliefs from the Health and …

We solve a rich life-cycle model of household decisions involving consumption of perishable goods and housing services …, habit formation for housing consumption, stochastic labor income, stochastic house prices, home renting and owning, stock …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …