: it is optimal for individuals to annuitize all of their wealth in the absence of bequest motive. We have other results … of her wealth. When the agent's wealth is above a certain wealth threshold, annuitization is triggered, otherwise it is … not. Accordingly, wealth plays a key role in controlling the distance to full annuitization …

demonstrates how the share of total wealth held in housing is sensitive to the rate of inflation, even when perfectly anticipated …

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 …

-agent framework with a stochastic opportunity set, we show that relative wealth concerns give rise to new hedge terms beyond the …' hedging demands. We also show that both heterogeneity in risk aversion or relative wealth concerns can have similar effects on …

elasticity of risk aversion to changes in wealth. We find that wealthier investors are more risk averse in the cross section, and … that investors become more risk averse after a negative housing wealth shock. Thus, investors exhibit preferences …

We test whether relative risk aversion varies with wealth using the Panel Study of Income Dynamics data in the U.S. Our … responds to wealth fluctuations, the income channel and the habit channel. For across households, there are heterogeneous … responses, and to provide strong evidence of relative risk aversion varying with wealth, after correcting two misspecification …

entry cost and variable costs, plays a key role in generating heterogeneous outcome in agent’s wealth accumulation, and … therefore, increases wealth inequality …