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dc.creatorKraft, Holger
dc.creatorMunk, Claus
dc.creatorWeiss, Farina
dc.date.accessioned2021-11-02T10:20:21Z
dc.date.available2021-11-02T10:20:21Z
dc.date.issued2018-06-08
dc.identifier.urihttps://fiftest.hebis.de/xmlui/handle/123456789/4711
dc.description.abstractIn a calibrated consumption-portfolio model with stock, housing, and labor income predictability, we evaluate the welfare effects of predictability on life-cycle consumption-portfolio choice. We compare skilled investors who are able to take advantage of all sources of predictability with unskilled investors ignoring predictability. For an unskilled investor the certainty equivalent of wealth is 0.3-6.8% lower than for a skilled investor, depending on the market entry date. We also determine the effect of luck to enter the market at a favorable time. Across market entry dates, skilled but unlucky investors can lose up to 15.4% compared to unskilled but lucky investors.
dc.rightsAttribution-ShareAlike 4.0 International
dc.rights.urihttp://creativecommons.org/licenses/by-sa/4.0/
dc.subjectHousehold Finance
dc.titlePredictors and Portfolios Over the Life Cycle
dc.typeWorking Paper
dcterms.referenceshttps://fiftest.hebis.de/xmlui/handle/123456789/4934?CRSP
dc.identifier.safeno139
dc.subject.keywordsreturn predictability
dc.subject.keywordsscenarios
dc.subject.keywordswelfare
dc.subject.keywordsperformance
dc.subject.keywordshousing
dc.subject.jelG11
dc.subject.jelD91
dc.subject.jelD14
dc.subject.topic1return
dc.subject.topic1quantify
dc.subject.topic1state
dc.subject.topic2true
dc.subject.topic2independent
dc.subject.topic2karatzas
dc.subject.topic3proof
dc.subject.topic3start
dc.subject.topic3motive
dc.source.filename139_SSRN-id2787568
dc.subject.topic1nameSaving and Borrowing
dc.subject.topic2nameConsumption
dc.subject.topic3nameMonetary Policy
dc.identifier.doi10.2139/ssrn.2787568


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Attribution-ShareAlike 4.0 International
Except where otherwise noted, this item's license is described as Attribution-ShareAlike 4.0 International