Essays about: "risky labor income"
Found 3 essays containing the words risky labor income.
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1. Household Hedging Motives and Financial Risk Taking: Evidence from Europe
University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomiAbstract : Financial economists have suggested how hedging motives related to human capital and real estate should affect financial risk-taking of a utility maximizing household. Using rich cross-sectional data from the second wave of the Eurosystem Household Finance and Consumption Survey, I analyze how such motives relate to the propensity to participate in the markets for risky assets and the risky share - portion of financial portfolio allocated to the risky assets. READ MORE
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2. A Realistically Calibrated Life Cycle Model of Portfolio Allocation and Consumption with Stochastic Non-Financial Income
University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomiAbstract : We analyze the effect of uninsurable stochastic non-financial income on the risky asset share in a life cycle model of portfolio allocation and consumption. The model is calibrated empirically using German data. We quantify the risk of non-financial income and show that this risk is largely idiosyncratic. READ MORE
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3. Portfolio Selection with Risky Labor Income
University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomiAbstract : By accounting for the size of future wages and their covariance with other assets, a Swedish investor can increase his or her certainty equivalent of total wealth by between 3 and 89 basis points on an annualized basis, given stable risk-return relationships and depending on a number of factors. We develop a two-period model which accounts for multiple risky future wages and multiple risky assets. READ MORE
