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Life-Cycle Portfolio Choice in an Intergenerational Set-up
, Errol D’souza
Published in iimidr.ac.in
2016
Abstract

This study solves the life-cycle portfolio choice problem of an altruistic father valuing the human-capital of his offspring and facing competing challenges of his consumption needs during working life and retirement. The problem is solved using dynamic programming where life-cycle profiles are generated using simulations. This study contributes to the financial literature on risk, borrowing constraints and portfolio choice by introducing inter-generational dynamics with children’s consumption and human-capital as investment options for the parent.

About the journal
JournalWORKING PAPER
Publisheriimidr.ac.in
Open AccessNo
Concepts (2)
  •  related image
    Portfolio choice
  •  related image
    Human capital