Format:
1 Online-Ressource (43 p)
Content:
Using the Panel Study of Income Dynamics Survey, we reveal the non-linear dependence, between-squares correlation, between stock returns and earning risk exists. To understand how this non-linear dependence affects household life-cycle profile, we develop a life-cycle model that incorporates between-squares correlation and shows that this non-linear dependence can explain low participation rate and moderate risky asset shares. Empirical studies support the mode’s predictions that households with higher between-squares correlations are less likely to participate in the stock market and lower their risky asset holdings conditional on participation
Note:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 13, 2022 erstellt
Language:
English
DOI:
10.2139/ssrn.4056325
