suppresses final wealth uncertainty but creates a time horizon risk. I begin with a simple mean variance model transposed in the … long-term US return data, I show in the mean variance model that a large amount of time horizon risk can be diversified … timing risk and invest less in equities. The equity share is downward trending as accumulated wealth approaches its target …

labor-income risk can explain much of this risk-taking pattern. Uncontrollable labor-income risk stresses middle …, middle-income households reduce (controllable) financial risk. Richer households, having less pressure, can afford more risk …-taking. The poor take low risk because they avoid jeopardizing their subsistence consumption. …

earnings risk and aggregate asset price risk, I show that changes in earnings dynamics account for a large part of the …

powerful risk decomposition scheme, we show in this study that diversification is improved by the addition of a global risk … addition to global liquidity and default risk factors, we also include country-specific default risk component, and all of them … are free of measurement or availability issues. The idiosyncratic risk component is estimated as a fixed effect along with …

-rate risk. Our model matches important stylized facts. First, the share of long-term assets in households' wealth is hump … rates fall, but only when wealth does not include the value of Social Security. Hedging demand against interest-rate risk …

We develop an analytically tractable model of optimal financing policies for a risk averse decision maker who is … exposed to climate risk causing a significant disruption to capital stock accumulation. We quantitatively identify certain … in the decision maker's optimal financing strategies occurs even when the possibility of climate risk is very slim …

We develop a methodology to estimate households’ exposure to systematic income risk and its causal effect on portfolio … substantial cross-sectional variation in systematic income risk. We find that households more exposed to business cycle …

ability to jointly match the historical equity premium and riskless rate, and has important implications for risk sharing. We … risk channel arising from fluctuations in the fund's endowment. We use our calibrated model to study the implications of a …

special solutions are provided. It is shown that idiosyncratic mortality risk has significant impacts on the wage earner …, while systematic mortality risk only has significant impacts on the wage earner’s investment in the zero-coupon bond and the … longevity bond. Since systematic mortality risk can be hedged by trading the longevity bond, its impacts on consumption …