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Saving rates and portfolio choice with subsistence consumption

✍ Scribed by Carolina Achury; Sylwia Hubar; Christos Koulovatianos


Book ID
113873595
Publisher
Elsevier Science
Year
2012
Tongue
English
Weight
332 KB
Volume
15
Category
Article
ISSN
1096-0929

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Optimal consumption–portfolio choices an
✍ Zvi Bodie; JΓ©rΓ΄me B. Detemple; Susanne Otruba; Stephan Walter πŸ“‚ Article πŸ“… 2004 πŸ› Elsevier Science 🌐 English βš– 414 KB

We examine consumption and investment decisions in a life-cycle model with habit formation, stochastic opportunity set, stochastic wages and labor supply exibility. Retirement is taken into account by specifying an age at which labor earnings stop, but consumption spending continues. Explicit soluti