Life Cycle Portfolio Choice: A Swiss Perspective
50 Pages Posted: 18 Oct 2006
Date Written: December 2006
Abstract
We use panel data from the Swiss Labor Force Survey to estimate age-earnings profiles as well as transitory and permanent income shock variances for investor groups distinguished by gender, education and activity rate. Estimation results are then used to stylize several different Swiss investor types. Finally, we determine optimal life cycle consumption, savings and risky asset share for these investor types using a recent computational life cycle model of portfolio choice suggested by Cocco et al. (2005). We are particularly interested in the allocation differences between the investor types and their normative implications.
Keywords: Personal finance, financial planning, life cycle model, portfolio choice
JEL Classification: G11, D14, D91, H55
Suggested Citation: Suggested Citation
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