Achury, Carolina; Hubar, Sylwia; Koulovatianos, Christos - Centre for Finance, Credit and Macroeconomics (CFCM), …
We analytically show that a common across rich/poor individuals Stone-Geary utility function with subsistence consumption in the context of a simple two-asset portfolio-choice model is capable of qualitatively explaining: (i) the higher saving rates of the rich, (ii) the higher fraction of...