Life-cycle risk-taking with personal disaster risk

Arbeitspapier

This paper examines households' self-insurance in financial markets when a rare personal disaster, such as disability or long-term unemployment, may occur during working years. Personal disaster risk alters lifetime ex-ante investment choices, even if most workers will not experience a disaster. Uncertainty about the size of human capital losses, which characterizes rare disasters, results in lower risk-taking at the beginning of working life, and is crucial in order to match the observed age profiles of US investors from 1992 to 2016.

Angaben zum Objekt

• ISBN: 978-92-9472-239-3
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ESRB Working Paper Series ; No. 132

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Intertemporal Household Choice; Life Cycle Models and Saving ; Macroeconomics: Consumption; Saving; Wealth ; Portfolio Choice; Investment Decisions
• Thema: disaster risk ; portfolio choice ; non-linear income process ; unemployment risk ; disability risk ; beta distribution

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bagliano, Fabio C. ; Fugazza, Carolina ; Nicodano, Giovanna
• Ereignis: Veröffentlichung
• (wer): European Systemic Risk Board (ESRB), European System of Financial Supervision
• (wo): Frankfurt a. M.
• (wann): 2021

Weitere Informationen

• DOI: doi:10.2849/095447
• Handle: http://hdl.handle.net/10419/265233
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ