Fagereng, AndreasAndreasFagerengGottlieb, CharlesCharlesGottliebGuiso, LuigiLuigiGuiso2023-04-132023-04-132017-03-21https://www.alexandria.unisg.ch/handle/20.500.14171/10252610.1111/jofi.12484Using error-free data on life-cycle portfolio allocations of a large sample of Norwegian households, we document a double adjustment as households age: a rebalancing of the portfolio composition away from stocks as they approach retirement and stock market exit after retirement. When structurally estimating an extended life-cycle model, the parameter combination that best fits the data is one with a relatively large risk aversion, a small per-period participation cost, and a yearly probability of a large stock market loss in line with the frequency of stock market crashes in Norway.enjournal article