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persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty …
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both differences in social security payments and different age-income profiles. -- Long-term unemployment ; social security …
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We use a life-cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...
Persistent link: https://www.econbiz.de/10011389307
market risk when they approach retirement. The authors show how long-run labor income risk helps explain this evidence …. Moreover, they discuss the effect of long-run labor income risk on the valuation of pension plan obligations, their funding …
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We use a life cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...
Persistent link: https://www.econbiz.de/10013144138
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