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dc.contributor.authorBall, Steffan
dc.date.accessioned2007-08-22T09:20:38Z
dc.date.available2007-08-22T09:20:38Z
dc.date.issued2007-03
dc.identifier.otherCWPE0707
dc.identifier.urihttp://www.dspace.cam.ac.uk/handle/1810/194687
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/194687
dc.description.abstractIn this paper we present a calibrated life-cycle model is able to simultaneously match asset allocations and stock market participation profiles over the life-cycle. The inclusion of per period fixed costs and a public pension scheme eradicates the need to assume heterogeneity in preferences, or implausible parameter values, in order to explain observed patterns. We find a per period fixed cost of less than two percent of the permanent component of annual labour income can explain the limited stock marker participation. More generous public pensions are seen to crowd out private savings and significantly reduce the estimates of these fixed costs. This is the first time that concurrent matching of participation and shares has been achieved within the standard preference framework.en
dc.language.isoenen
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectPrecautionary Savingen
dc.subjectPortfolio Choiceen
dc.subjectStock Market Participationen
dc.subjectUninsurable Labour Income Risken
dc.titleStock Market Participation, Portfolio Choice and Pensions over the Life-cycleen
dc.typeWorking Paperen
dc.identifier.doi10.17863/CAM.5487


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