develops an overlapping generations model in which agents differ both in age and risk tolerance. Equilibrium rebalancing is … driven by a leverage effect that affects levered and unlevered agents in opposite directions, an aggregate risk tolerance …

. After a negative macroeconomic shock, relatively risk tolerant investors sell risky assets while more risk averse investors … risk after a negative macroeconomic shock and lower exposure after a positive shock …This paper develops an overlapping generations model of optimal rebalancing where agents differ in age and risk …

. After a negative macroeconomic shock, relatively risk tolerant investors sell risky assets while more risk averse investors … risk after a negative macroeconomic shock and lower exposure after a positive shock …This paper develops an overlapping generations model of optimal rebalancing where agents differ in age and risk …