Asset Management, Human Capital, and the Market for Risky Assets
Isaac Ehrlich (),
WilliamÂ A. Hamlen and
Yong Yin ()
Journal of Human Capital, 2008, vol. 2, issue 3, 217-262
Conventional finance models treat riskyâ€ asset prices as â€œfully (information) revealing.â€ Less work exists on how prices become information revealing. Our answer focuses on the micro foundations of information acquisition and the role of human capital in â€œasset management.â€ We derive testable propositions on how education and the opportunity cost of asset management affect riskyâ€ asset demand, portfolio returns, assetâ€ price volatility, and equity premiums. Using microâ€ level data, we find that education raises the portfolio share of risky assets and overall portfolio returns, whereas wage rates exert opposite effects. We find that the rate of return to education in generating nonwage income is nontrivial.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Access to the online full text or PDF requires a subscription.
Working Paper: Asset Management, Human Capital, and the Market for Risky Assets (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ucp:jhucap:v:2:i:3:y:2008:p:217-262
Access Statistics for this article
More articles in Journal of Human Capital from University of Chicago Press
Series data maintained by Journals Division ().