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 …

This paper examines the association between stock market return expectations and financial wealth holdings of older … of positive stock market return were positively associated with greater financial wealth holdings among households. Our … financial wealth holdings of households. African Americans, Hispanics, and other races were negatively associated with the …

financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth …