• Consumption Habits and Humps 

      Kraft, Holger; Munk, Claus; Seifried, Frank Thomas; Wagner, Sebastian (2015-07-10)
      We show that the optimal consumption of an individual over the life cycle can have the hump shape (inverted U-shape) observed empirically if the preferences of the individual exhibit internal habit formation. In the absence ...
    • Housing Habits and Their Implications for Life-Cycle Consumption and Investment 

      Kraft, Holger; Munk, Claus; Wagner, Sebastian (2017-01-26)
      We solve a rich life-cycle model of household decisions involving consumption of perishable goods and housing services, habit formation for housing consumption, stochastic labor income, stochastic house prices, home renting ...
    • Twin Picks: Disentangling the Determinants of Risk-Taking in Household Portfolios 

      Calvet, Laurent E.; Sodini, Paolo (2013-03-21)
      This paper investigates risk-taking in the liquid portfolios held by a large panel of Swedish twins. We document that the portfolio share invested In risky assets is an increasing and concave function of financial wealth, ...