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The Effect of Health Care Policy Uncertainty on Households' Consumption and Portfolio Choice

Wiemann, Thomas T. - 2020

health care reform in the United States is a potentially important source of households' financial uncertainty. To quantify … the implications of this uncertainty for the real economy, this paper conducts an empirical analysis of the effect of … health care policy uncertainty (HCPU) on two channels of households' economic behavior: consumption and portfolio choice …

Persistent link: https://www.econbiz.de/10012848640

Life-Cycle Asset Allocation and Unemployment Risk

Bagliano, Fabio C. - 2016

In this paper we extend the traditional life cycle model of saving and portfolio choice to allow for possible long-term unemployment spells to have permanent effects on subsequent labor income prospects. The risk of losing future labor income could imply strong human capital erosion for the...

Persistent link: https://www.econbiz.de/10012997202

Unemployment and Portfolio Choice : Does Persistence Matter?

Kuzin, Vladimir - 2010

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

Countercyclical Risks and Portfolio Choice Over the Life Cycle : Evidence and Theory

Shen, Jialu - 2019

I show that countercyclical earnings dynamics can have quantitatively important effects on saving and portfolio choice decisions over the life cycle. During expansions (recessions) when expected future earnings growth is high (low), households save less (more) and also invest a higher (lower)...

Persistent link: https://www.econbiz.de/10012898145

Debt Portfolios

Hintermaier, Thomas - 2011

We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the calibrated model matches important quantitative...

Persistent link: https://www.econbiz.de/10013126139

Unemployment and portfolio choice : does persistence matter?

Kuzin, Vladimir; Bremus, Franziska - 2010

persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty …

Persistent link: https://www.econbiz.de/10003934763

Unemployment and portfolio choice : does persistence matter?

Bremus, Franziska; Kuzin, Vladimir - 2011 - This version: October 13, 2011

Households can rely on private savings or on public unemployment insurance to hedge against the risk of becoming unemployed. These hedging mechanisms are used differently across countries. In this paper, we use a life cycle model to study the effects of unemployment on the portfolio choice of...

Persistent link: https://www.econbiz.de/10009515596

Unemployment and portfolio choice : does persistence matter?

Kuzin, Vladimir; Bremus, Franziska - 2010

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

Optimal Consumption and Investment with Labor Income Uncertainty and Endogenous Retirement

Woolley, Matthew M. - 2004

This paper characterizes optimal consumption and investment policies for investors with asset return predictability, stochastic labor income and endogenously-determined retirement. We find that the ratio of total wealth-to-labor income (normalized wealth) is the primary determinant of the...

Persistent link: https://www.econbiz.de/10014069598

The role of labor-income risk in household risk-taking?

Hubar, Sylwia; Koulovatianos, Christos; Li, Jian - 2020

In fifteen European countries, China, and the US, stocks and business equity as a share of total household assets are represented by an increasing and convex function of income/wealth. A parsimonious model fitted to the data shows why background labor-income risk can explain much of this...

Persistent link: https://www.econbiz.de/10012251025