Equity culture has spread among households on both sides of the Atlantic. We analyze the likely changes in behavior of households that enter the stock market in response to arrival of information about how to invest in stocks. Without borrowing constraints, the improved prospects arising from...

This paper studies effects of income-based and collateral borrowing constraints on wealth accumulation andportfolios. We compare unconstrained and constrained behavior for different types of constraints and degrees of tightness.Income-based constraints can reduce or eliminate effects of earnings...

We analyze life-cycle wealth accumulation and portfolio choice under career uncertainty and quantifiable departures from expected utility maximization. Our specification nests expected utility and three types of non-expected utility: 1) Kreps-Porteus preferences which disentangle risk aversion...

Existing findings suggest that standard, frictionless, expected-utility models have difficulty accounting for average and for median holdings of wealth and of risky assets, partly as a result of the largely unexplained limited proportion of stockholders among households. We analyze life-cycle...

Existing findings suggest that standard, frictionless, expected-utility models have difficulty accounting for average and for median holdings of wealth and of risky assets, partly as a result of the largely unexplained limited proportion of stockholders among households. We analyze life-cycle...

This paper studies the effects of two classes of borrowing constraints, collateral and income based, on wealth accumulation, portfolio behavior, and precautionary motives. We examine the sensitivity of solutions to the tightness of constraints, education levels, and preference parameters. The...

This paper studies effects of two classes of borrowing constraints, collateral- and income-based, on wealth accumulation, portfolio behavior and on precautionary motives. We examine the sensitivity of solutions to tightness of constraints, education level, and preference parameters. The models...

Equity culture has spread among households on both sides of the Atlantic. We study likely effects of equity culture on the behavior of households entering the stock market. Without borrowing constraints, the improved prospects arising from the equity premium tend to dominate the increase in...

Purpose –This paper aims to explore convergence of accounting standards across worldwide adopted measures to investigate whether countries that have not completely adopted International Accounting Standards across the globe have displayed a tendency to act so. Design/methodology/approach...