Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that … assets. Because households are subject to more background risk than previously considered, the estimated model implies a … substantially lower coefficient of risk aversion. We also find renewed support for rule-of-thumb investment strategies under the …

. We deepen the discussion on wealth inequality by evaluating the relative importance of savings, portfolio choice and … inheritances for the accumulation of wealth. To do so, we project active and passive savings based on the observed saving and …