rises in wealth in the cross-section of households in the Survey of Consumer Finances. For a given household, the portfolio … share can fall in response to an increase in wealth, even though the model implies decreasing relative risk aversion …

Using the Household Finance and Consumption Survey (HFCS), a large micro-level dataset on households’ wealth in fifteen … holds risky assets. The ownership rates of all asset categories generally increase with wealth (and income). The … significance of inheritances for wealth accumulation is remarkable and underlines its key role in the process of persistent wealth …

Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs …. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a … relatively constant ratio of investment assets to wealth from year to year. However, some households may fail to rebalance, or …

rises in wealth in the cross-section of households in the Survey of Consumer Finances. For a given household, the portfolio … share can fall in response to an increase in wealth, even though the model implies decreasing relative risk aversion …

Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs …. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a … relatively constant ratio or investment assets to wealth from year to year. However, some households may fail to rebalance, or …