EconPapers    
Economics at your fingertips  
 

Occupation-level income shocks and asset returns: their covariance and implications for portfolio choice

Steven Davis () and Paul S. Willen ()
Additional contact information
Paul S. Willen: Federal Reserve Bank of Boston

No 13-9, Working Papers from Federal Reserve Bank of Boston

Abstract: This paper develops and applies a simple graphical approach to portfolio selection that accounts for covariance between asset returns and an investor's labor income. Our graphical approach easily handles income shocks that are partly hedgeable, multiple risky assets, multiple risky assets, many periods, and life cycle considerations.

Keywords: life cycle portfolio choice; risky labor income; graphical approach; occupation-level income shocks (search for similar items in EconPapers)
JEL-codes: D52 D91 G11 J30 (search for similar items in EconPapers)
Date: 2013-10-24, Revised 2013-10-24
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.bostonfed.org/economic/wp/wp2013/wp1309.pdf Full text (application/pdf)

Related works:
Journal Article: Occupation-Level Income Shocks and Asset Returns: Their Covariance and Implications for Portfolio Choice (2013) Downloads
Working Paper: Occupation-Level Income Shocks and Asset Returns: Their Covariance and Implications for Portfolio Choice (2000) Downloads
Working Paper: Occupation-Level Income Shocks and Asset Returns: Their Covariance and Implications for Portfolio Choice (2000) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbwp:13-9

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Series data maintained by Catherine Spozio ().

 
Page updated 2017-12-03
Handle: RePEc:fip:fedbwp:13-9