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. We develop a model of optimal consumption and portfolio choice for infinitely-lived investors facing stochastic interest … substitute consumption intertemporally should hold a portfolio of long-term indexed bonds that is equivalent to an indexed … perpetuity. This portfolio finances a riskless consumption stream and in this sense provides a stable income. We calibrate our …
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consumption and portfolio choice problem of a long-lived investor facing time-varying investment opportunities. The investor is …
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We use data on Indian stock portfolios to show that return heterogeneity is the primary contributor to increasing inequality of wealth held in risky assets by Indian individual investors. Return heterogeneity increases equity wealth inequality through two main channels, both of which are related...
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This chapter reviews the behavior of financial asset prices in relation to consumption. The chapter lists some …
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