Portfolio choice over the life-cycle: a survey
Journal
Annual Review of Financial Economics
Subject
Finance
Publishing details
Authors / Editors
Gomes F
Biographies
Publication Year
2020
Abstract
Life-cycle portfolio choice models capture the role of human capital, housing, borrowing constraints, background risk, and several other crucial ingredients for determining the savings and investment decisions of households. Over the last two decades, this literature has provided us with multiple insights regarding the asset allocation decisions of individual investors. This article provides a critical survey of this research and suggests directions for future research, namely incorporating additional forms of household heterogeneity.
Keywords
Life-cycle models; Portfolio choice; Household finance
Available on ECCH
No
