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This paper investigates the relationship between demographic changes and the long-run returns of dividend …-fungible, the preference for high dividend-paying stocks by older investors means that the excess returns of high dividend … that, as consistent with the behavioural life-cycle hypothesis, the long-run returns of dividend-yield investment …
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We study portfolio choice when labor income and dividends are cointegrated. Economically plausible calibrations suggest young investors should take substantial short positions in the stock market. Because of cointegration the young agent's human capital effectively becomes "stock-like." However,...
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