Life-cycle portfolio choice models capture the role of human capital, housing, borrowing
constraints, background risk, and several other crucial ingredients for determining the …

This paper surveys the academic literature on optimal saving and investment over an
individual's life cycle. We start out with a simple benchmark model with separable and …

Household finance—the normative and positive study of how households use financial
markets to achieve their objectives—has gained a lot of attention over the past decade and …

Using error‐free data on life‐cycle portfolio allocations of a large sample of Norwegian
households, we document a double adjustment as households age: a rebalancing of the …

Stock market participation is monotonically related to IQ, controlling for wealth, income, age,
and other demographic and occupational information. The high correlation between IQ and …

Household financial decisions are complex, interdependent, and heterogeneous, and
central to the functioning of the financial system. We present an overview of the rapidly …

We calculate the present value of state employee pension liabilities using discount rates that
reflect the risk of the payments from a taxpayer perspective. If benefits have the same default …

The level of average household wealth in all countries is estimated via the determinants of
assets and debts for 39 countries which have balance sheet or survey data. The distribution …

As of December 2008, state governments had approximately 1.94trillionsetasideinpensionfundsfortheiremplo…
.Howdoesthevalueoftheseassetscomparetot…'pensionliabilities?JustasfutureSocialSecurityandMedicareliab …

The unique regulation of US public pension funds links their liability discount rate to the
expected return on assets, which gives them incentives to invest more in risky assets in …