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Portfolio Choice in Retirement – What is the Optimal Home Equity Release Product?

Hanewald, Katja - 2014

release home equity using reverse mortgages or home reversion plans, to buy annuities, and long-term care insurance. The …

Persistent link: https://www.econbiz.de/10013057286

Optimal Portfolio Choice with Health-Contingent Income Products : The Value of Life Care Annuities

Wu, Shang - 2016

Whereas there is ample evidence that life-contingent income products (life annuities) have the potential to improve … individual welfare, combining them with health-contingent income products (resulting in so-called life care annuities) would … care annuities instead of standard life annuities increase their level of annuitization by around 12 percentage points …

Persistent link: https://www.econbiz.de/10012985829

Consumption and Portfolio Selection with Recursive Utility, Stochastic Income, and Liquidity Constraints

Choi, Kyoung Jin; Kwak, Minsuk; Lim, Byung Hwa - 2021

This paper studies a continuous-time optimal consumption and portfolio selection problem when an economic agent with recursive utility has stochastic income and liquidity constraints. To tackle this problem, we introduce a transform of the Hamilton-Jacobi-Bellman equation into a free boundary...

Persistent link: https://www.econbiz.de/10013231643

Taxing the Disposition Effect : The Impact of Tax Awareness on Investor Behavior

Bazley, William J.; Moore, Jordan; Murren Vosse, Melina - 2021

Standard portfolio choice models predict that investors consider the tax implications of trading. However, individuals are disposed toward realizing gains and holding losing investments, behaviors that worsen their performance. We show, in an experimental market, that increasing tax salience...

Persistent link: https://www.econbiz.de/10013247044

Portfolio Choice in Retirement - What is the Optimal Home Equity Release Product?

Hanewald, Katja - 2013

longevity, long-term care, house price, and interest rate risk. The individual can choose to buy annuities, long-term care … change the demand for annuities …

Persistent link: https://www.econbiz.de/10013080422

Portfolio choices over the life-cycle and the cyclical skewness of labor income shocks

Catherine, Sylvain - 2016

I estimate a life-cycle model of portfolio choices that incorporates the relationship between market returns and the skewness of idiosyncratic income shocks. The cyclicality of skewness can explain (i) low stock market participation among young households, (ii) why the equity share of...

Persistent link: https://www.econbiz.de/10011612048

Predictors and portfolios over the life cycle : skill vs. luck

Kraft, Holger; Munk, Claus; Weiss, Farina - 2017 - Current version: February 6, 2017

In a calibrated consumption-portfolio model with stock, housing, and labor income predictability, we disentangle the welfare effects of skill and luck. Skilled investors are able to take advantage of all sources of predictability, whereas unskilled investors ignore predictability. Lucky...

Persistent link: https://www.econbiz.de/10012061991

Heterogeneity and risk sharing in village economies

Chiappori, Pierre-André; Krislert Samphantharak; … - In: Quantitative economics : QE ; journal of the … 5 (2014) 1, pp. 1-27

We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we then test allowing for this heterogeneity. There is...

Persistent link: https://www.econbiz.de/10011757115

Richer earnings dynamics, consumption and portfolio choice over the life cycle

Gálvez, Julio; Paz-Pardo, Gonzalo - 2022

Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that, in the context of a structurally estimated life-cycle portfolio choice model, allowing for these rich features of earnings dynamics helps to better understand the limited...

Persistent link: https://www.econbiz.de/10014236105

Richer earnings dynamics, consumption and portfolio choice over the life cycle

Gálvez, Julio; Paz Pardo, Gonzalo - 2023

Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that allowing for these rich features of earnings dynamics, in the context of a structurally estimated life-cycle portfolio choice model, helps to rationalize the limited participation...

Persistent link: https://www.econbiz.de/10014278693