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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
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Unemployment and portfolio choice : does persistence matter?
Kuzin, Vladimir; Bremus, Franziska M. - 2010
persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty …
Persistent link: https://www.econbiz.de/10003934763
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Unemployment and portfolio choice : does persistence matter?
Bremus, Franziska M.; 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
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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
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Portfolio Choice and Precautionary Savings
Calcagno, Riccardo - 2011
We study the effect on savings of an increase in the capital risk of the investment opportunities when the representative consumer is allowed to optimally choose her portfolio. Sandmo (1970) and Levhari and Srinivasan (1969) prove that individuals with high risk-aversion and time-separable,...
Persistent link: https://www.econbiz.de/10013122523
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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
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Does Relative Risk Aversion Vary with Wealth? Evidence from Households' Portfolio Choice Data
Liu, Xuan - 2016
We test whether relative risk aversion varies with wealth using the Panel Study of Income Dynamics data in the U.S. Our analytical results indicate the following implications. For each household, there are two channels through which the risky share responds to wealth fluctuations, the income...
Persistent link: https://www.econbiz.de/10013008171
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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
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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
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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