Understanding the heterogeneity of savings and asset allocation: A behavioral-economics perspective
Journal
Journal of Economic Behavior & Organization
ISSN
01672681
Type
journal article
Date Issued
2010
Author(s)
Abstract
Why do saving rates and the proportion of savings invested in stocks substantially increase with income? This paper sheds light on this question from the perspective of a new bound-ed-rationality life cycle model. It has been shown elsewhere that this model is better than existing ones at predicting how savings and asset allocation choices vary over the life cycle. In this paper it is shown that a very simple version of the same model also allows for a better understanding of the variation in savings and asset allocation choices across income groups.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
None
Refereed
Yes
Volume
76
Number
2
Start page
296
End page
317
Official URL
Subject(s)
Contact Email Address
johannes.binswanger@unisg.ch
Eprints ID
255459