WebIncome Risk, Borrowing Constraints, and Portfolio Choice By LUIGI Guiso, TULLIO JAPPELLI, AND DANIELE TERLIZZESE * Economic theory suggests that uninsurable income risk and the expectation of future borrowing constraints can reduce the … WebBorrowing Constraints and Portfolio Choice. Author & abstract. Download. 34 Citations. Related works & more. Corrections.
Labor income, borrowing constraints, and equilibrium asset …
WebIn this paper we investigate an optimal job, consumption, and investment policy of an economic agent in a continuous and infinite time horizon. The agent's preference is characterized by the Cobb-Douglas utility function whose arguments are consumption ... WebChristina Paxson, 1990. " Borrowing Constraints and Portfolio Choice ," The Quarterly Journal of Economics, Oxford University Press, vol. 105 (2), pages 535-543. Handle: RePEc:oup:qjecon:v:105:y:1990:i:2:p:535-543. as dataframe to network graph
Borrowing Constraints and Portfolio Choice - Research Papers …
WebBorrowing/lending is done through one single instrument: a one-period bond that yields interest rate r. Consumers’ budget constraint in the rst period is: c + s = y t; where s > 0 implies that the consumer is saving (buying the bond), s < 0 implies that the consumer is borrowing (selling the bond), y t is the consumer’s disposable income ... WebNov 7, 2013 · This paper studies a continuous-time dynamic mean-variance portfolio selection problem with the constraint of a higher borrowing rate, in which stock price is governed by a constant elasticity of variance (CEV) process. Firstly, we apply Lagrange duality theorem to change an original mean-variance problem into an equivalent … Webin the implications that features such as labor choice, market imperfections, borrowing constraints, and returns predictability, among other, absent from the previous models, have on individuals choices. The economic theory underlying investor¶s optimal portfolio choice in highly stylized models is now well understood. database server host name