Kuzin, Vladimir; Bremus, Franziska - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2010
(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states …, short-term as well as long-term unemployment. This allows us to examine the effects of persistence in the unemployment … process on portfolio choice. Our main findings are, first, that in case of short-term unemployment only, social security …
