Popular investment advice recommends that the stock/bond and stock/wealth ratios should rise with investor risk tolerance and investment horizon respectively, prescriptions that are difficult to reconcile with the simple mean-variance model. We show that extending the mean-variance model to include human capital, without any other modifications, can simultaneously justify both recommendations, so long as the correlation between labour income and stock returns falls within a range determined by market and investor-specific parameters. Aggregate labour income data from 11 countries generally satisfy this requirement, as do plausible individual income processes. We also consider the implications of human capital for the optimal bond/wealth ...
In this paper the authors extend the standard human capital model with the probability of becoming u...
Though work product can be quantified and translated into salaries and wages, the value of employees...
This paper reconsiders the traditional approach to human capital measurement in the study of cross-c...
Popular investment advice recommends that the stock/bond and stock/wealth ratios should rise with in...
Popular investment advice recommends that the stock/bond and stock/wealth ratios should rise with in...
We show that a life-cycle asset allocation model with liquidity constraints and realistically calibr...
Using a general equilibrium model with endogenous growth, I show that risk to human capital leads to...
We show that a life-cycle asset allocation model with liquidity constraints and realistically calibr...
We show that a life-cycle asset allocation model with liquidity constraints and realistically calibr...
A Research Project Submitted in Partial Fulfillment for the award of Bachelor of Business Science in...
In this paper we illustrate the possible normative relevance of the links between human capital and ...
This study examines life-cycle optimal consumption and asset allocation in the presence of human cap...
The authors extend the theory of human capital investment under uncertainty by incorporating postinv...
In this paper we analyze how an individual should optimally in-vest in human capital when he also ha...
Financial planners and advisors have recently started to recognize that human capital must be taken ...
In this paper the authors extend the standard human capital model with the probability of becoming u...
Though work product can be quantified and translated into salaries and wages, the value of employees...
This paper reconsiders the traditional approach to human capital measurement in the study of cross-c...
Popular investment advice recommends that the stock/bond and stock/wealth ratios should rise with in...
Popular investment advice recommends that the stock/bond and stock/wealth ratios should rise with in...
We show that a life-cycle asset allocation model with liquidity constraints and realistically calibr...
Using a general equilibrium model with endogenous growth, I show that risk to human capital leads to...
We show that a life-cycle asset allocation model with liquidity constraints and realistically calibr...
We show that a life-cycle asset allocation model with liquidity constraints and realistically calibr...
A Research Project Submitted in Partial Fulfillment for the award of Bachelor of Business Science in...
In this paper we illustrate the possible normative relevance of the links between human capital and ...
This study examines life-cycle optimal consumption and asset allocation in the presence of human cap...
The authors extend the theory of human capital investment under uncertainty by incorporating postinv...
In this paper we analyze how an individual should optimally in-vest in human capital when he also ha...
Financial planners and advisors have recently started to recognize that human capital must be taken ...
In this paper the authors extend the standard human capital model with the probability of becoming u...
Though work product can be quantified and translated into salaries and wages, the value of employees...
This paper reconsiders the traditional approach to human capital measurement in the study of cross-c...