Get all the updates for this publication
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.
Journal | WORKING PAPER |
---|---|
Publisher | iimidr.ac.in |
Open Access | No |