assume a constant consumption-wealth ratio that constrains the boundary conditions, hence influencing the coefficient of the … risk premium. The main contribution of our paper is that we drop the assumption of a constant consumption-wealth ratio. We … terminal condition of wealth with and without bequests. We also simulate the stochastic optimization with a self …

optimization problem that aims at preserving for each wealth instrument the level of inequality measured by the Gini coefficient … wealth discrepancies across the households. Finally, based on the German HFCS, we compare the findings with another approach … may reallocate households' wealth beyond the observed discrepancies, thereby leading to Gini coefficients that exceed the …