Occupational choice and liquidity constraints
β Scribed by THIERRY MAGNAC; JEAN-MARC ROBIN
- Book ID
- 112264471
- Publisher
- Elsevier Science
- Year
- 1996
- Weight
- 214 KB
- Volume
- 50
- Category
- Article
- ISSN
- 0035-5054
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This paper solves for optimal international portfolio choice in the presence of liquidity constraints and undiversiΓΏable labor income risk. Optimal portfolios are internationally diversiΓΏed while positive correlation between domestic stock market returns and permanent labor income shocks can generat
## Abstract We present a dynamic framework for the interaction between borrowing (liquidity) constraints and deviations of actual hours from desired hours, both measured by discreteβvalued indicators, and estimate it as a system of dynamic binary and ordered probit models with panel data from the P