This paper examines how households should optimally allocate their portfolio choices between risky stocks and risk …

stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits …

risk neutrality with respect to life duration. To overpass this limitation, we extend the theory to a simple variety of …-saving programs: current practice, we estimate, puts too little weight on mortality risk reduction of the young. Our correction …

This paper investigates how of systematic risk varies over the lifecycle of the firm. If market equity beta is … determined by firm characteristics as the literature on the determinants of systematic risk holds, and if those characteristics … change over the lifecycle of the firm following a definite pattern as firm lifecycle theory suggests, then market equity beta …

savings in stocks. In contrast, a significant fraction of U.S. households do not hold stocks. Investors typically hold very … market risk when they approach retirement. The authors show how long-run labor income risk helps explain this evidence …. Moreover, they discuss the effect of long-run labor income risk on the valuation of pension plan obligations, their funding …