Using longitudinal data from PSID, we show the positive relation between labor income and the equity share of financial …

From standard portfolio-choice theory it is well-understood that background risk, overwhelmingly due to wage risk, is … the residual variance of wages by one standard deviation implies a reduction of the financial portfolio share by 3 …

payers act according to some non-expected utility theory, and (2) Individual ethical norms and social stigma induce people … subjective probabilities of being penalised according to the rank dependent utility theory, and (2) Tax payers' beliefs about … utility theory. The model explains data 53% better than pure random choices and predicts hours worked in the regular economy …