Preference for Wealth and Life Cycle Portfolio Choice

Claudio Campanale () and Carolina Fugazza ()
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Claudio Campanale: Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS) and CERP (CCA) University of Torino, Italy
Carolina Fugazza: Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS) and CERP (CCA) University of Torino, Italy

No 75, Working papers from Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino

Abstract: Do participation and investment in risky assets increase with wealth? Do the wealthiest households save at higher rates than the median households and is wealth more concentrated than earnings? Based on survey data, this paper shows that this is the case. Moreover, the paper provides a theoretical framework based on an extended version of the life-cycle model of consumption and portfolio choice that enables to explain differences in behavior between the wealthiest and others.

Keywords: Life-cycle; Portfolio Choice; Preference over Wealth; Wealth Inequality (search for similar items in EconPapers)
JEL-codes: D15 E21 G11 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2022-06
New Economics Papers: this item is included in nep-dcm, nep-dge, nep-fdg, nep-fmk and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:tur:wpapnw:075

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